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How to Calculate Process Cycle Efficiency

April 15, 2010 By 5 Comments

We’ve received several questions related to how to calculate Process Cycle Efficiency (PCE) over on our most popular blog article of all time: How to Create a Current State Value Stream Map.

And while I have written on this PCE topic before… I decided to make a quick tutorial on how I came up with the PCE of 0.15% in the example VSM used as the case study in the aforementioned blog article.

Here is the spreadsheet used in the tutorial.  As always, if you have any questions, please let me know.

If you’re reading this article via email or your RSS reader you may need to click over to the website to see the video.

Related Posts:

  1. The Mysterious Process Cycle Efficiency
  2. 3rd Annual Lean, Six Sigma, & Process Improvement Summit
  3. The Efficiency Conundrum
  4. Process Mapping – Lean or Six Sigma Tool?
  5. What is RSS?
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Comments

  1. Erin Martinez says:
    April 16, 2010 at 8:15 am

    Thanks for explaining this so well. I also use IGrafx to make value stream maps but will admit I really never knew how they got their PCE values.

    Reply
  2. sharmila says:
    December 15, 2010 at 1:47 am

    Hi there,
    What is the rating that determines PCE? good ,bad,etc? What does PCE 0.15% mean?

    Reply
  3. Ron Pereira says:
    December 15, 2010 at 9:06 am

    @ sharmilla – check out this article: http://lssacademy.com/2007/03/15/mysterious-process-cycle-efficiency/

    Reply

Trackbacks

  1. Learn how to create a current state value stream map! | Lean Six Sigma Academy says:
    April 15, 2010 at 12:01 pm

    [...] To calculate the process cycle efficiency (PCE) we divide the value-add time by the PLT. When we do this we get a PCE of 0.15%.  To see exactly how this was done please read this article. [...]

    Reply
  2. Tweets that mention How to Calculate Process Cycle Efficiency | Lean Six Sigma Academy -- Topsy.com says:
    April 16, 2010 at 4:32 am

    [...] This post was mentioned on Twitter by LearnSigma. LearnSigma said: Just Read: How to Calculate Process Cycle Efficiency: We’ve received several questions related to how to calculate… http://bit.ly/aDTi3N [...]

    Reply

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