What does universal efficiency mean?

If a company has manufacturing cycle efficiency (MCE) of less than one, what does it mean? How would you inter?

  • If a company has manufacturing cycle efficiency (MCE) of less than one, what does it mean? How would you interpret an MCE of 0.40? What kinds of improvements can a company put into place in order to improve their MCE?

  • Answer:

    An MCE of less than 1 means that the production process includes non-value-added time. An MCE of 0.40, for example, means that 40% of throughput time consists of actual processing, and that the other 60% consists of moving, inspection, and other non-value-added activities.

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