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ABC Manufacturing is evaluating the desirability of implementing process improvements and is seeking your help in determining whether it should proceed with the proposed improvements.

ABC Manufacturing is evaluating the desirability of implementing process improvements and is seeking your help in determining whether it should proceed with the proposed improvements. One area of focus is how the improvements will affect processing time (manufacturing cycle time efficiency). Estimated activities and associated times for these activities under both the current process and after process improvements are as follows:

Process Activity Current Process After Process Improvements
Wait time 4 hours 1 hour
Inspection 40 minutes 5 minutes
Moving 80 minutes 20 minutes
Processing (manufacturing) 2 hours 75 minutes

Required:

1. Determine the manufacturing (production) lead time (in minutes) for each of the two decision alternatives.

2. Determine the manufacturing cycle efficiency (MCE) for each decision alternative.

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