File:Process Cycle Efficiency.PDF
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PCE is a measure of the relative efficiency in a process - it represents the percentage of value add time (changing form, fit, function) of a product down the critical path
The formula for calculating PCE =
Customer Value Add Time ÷ Process Cycle Time
PCE is the performance indicator of how efficiently the process is converting work-in-process into exits.
World Class PCE Benchmarks:
Application | Low End PCE Goal | High-End PCE Goal
(World-Class PCE *)
Piece Flow Assembly | 30% | 80%
Batch Transfer Assembly | 35% | 85%
Transactional Processes | 10% | 50%
Creative/Cognitive Processes | 5% | 25%
Manufacturing | 5% | 25%
- Based on data from over 100 companies
[extracted from page 35 of attached document co-authored by L.E.Gibbons and R.C.Adamas]
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|current||20:39, 15 April 2007||1,275 × 1,650, 57 pages (2.86 MB)||Laura gibbons||PCE is a measure of the relative efficiency in a process - it represents the percentage of value add time (changing form, fit, function) of a product down the critical path The formula for calculating PCE = Customer Value Add Time ÷ Process Cycle Time|
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