Zodiac Sound Co. manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large-scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, youve been asked to provide some input. Fortunately, youve recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to managements request.

Required:

3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT:

Activity	Current System		After JIT Implementation
Storage	65	minutes	25	minutes
Inspection	35	minutes	20	minutes
Moving	50	minutes	20	minutes
Processing	65	minutes	35	minutes

4. What is the percentage change in average MCE anticipated under JIT?

(For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 = 12.34%).)