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6 The following data are average times per order over the last month. Move time Inspection time Queue time Wait time to start production Delivery

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6 The following data are average times per order over the last month. Move time Inspection time Queue time Wait time to start production Delivery cycle time Hours 0.6 0.7 0.3 5.5 The manufacturing cycle efficiency (MCE) would be closest to: A. B. C. D. E. 0.36 0.28 0.16 0.90 2.50 Which of the following statements is false regarding performance A. Because of operating leverage, an increase in unit sales ordinarily has the effect of increasing sales margin. B. Capital turnover measures the ability to generate revenue for each dollar invested in operating assets. C. In a well-designed balanced scorecard, financial performance measures should be integrated with non-financial 7 mcasures. Inspecting, moving, and queuing time add no value to the product and should be eliminated as much as possible. One major disadvantage of the return on investment approach is that it cannot be used to compare the performance of divisions of different sizes. D. E

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