Question

Bronigan’s, a maker of handheld video games, recently analyzed its manufacturing process to identify value-added and non-value-added activities. Bronigan’s found that the total non-value-added manufacturing time associated with producing the average game was 0.2 hours and the total time to produce the average game was 0.5 hours.What is the manufacturing efficiency ratio for game production at Bronigan's?

Answer 1

Manufacturing efficiency ratio= 60%

Step-by-step explanation:

Manufacturing efficiency ratio measure the proportion of time it takes to perform value-added activities. This information is used to reduce time spent on non value-adding activities, thereby reducing cost and making production faster.

Using the formula

Manufacturing efficiency ratio= Value-added production time/ production cycle time

Value-added production time= Cycle time - non value-added manufacturing time

Value-added production time= 0.5-0.2= 0.3

Therefore

Manufacturing efficiency ratio= 0.3/0.5= 0.6

Manufacturing efficiency ratio= 60%