A process has inventory breakdown as follows (RM = 200 pieces, WIP = 80 pieces, FG...

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Operations Management

A process has inventory breakdown as follows (RM = 200 pieces,WIP = 80 pieces, FG = 400 pieces) with an average customer demandper day of 80 FG pieces (1 Piece of RM inventory is required tomake 1 piece of WIP and 1 piece of WIP piece is required to make 1piece of FG). The total Value-Added Time for the process is 970seconds. Calculate the Process Cycle Efficiency (PCE).
The above question contains 20 Marks. As per Universityguidelines, the answer should be a min of 500 words. So please I amrequesting you please prepare as per guidelines.

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The Process Cycle Efficiency is also known as Value Added Ratio It is a measurement of the amount of valueadded time in a process Here higher the number then process will be more efficient In Manufacturing industry material flow go on from Warehouse Store production line Assembly line Finished Good Ready for dispatch Here material flow many of time it spends 95 time in waiting This is because time delay injected by fewer than 20 of workstations known as Time traps We can easily identify Time traps by value stream See Answer

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