Process Cycle Efficiency (PCE) Calculator

How it works

PCE = Value-added time ÷ Total lead time × 100 · Non-value-added time = Lead time − Value-added time · Lead time at a target PCE = Value-added time ÷ Target PCE

Process cycle efficiency is the Lean Six Sigma measure of how much of a process’s elapsed time actually adds value for the customer. Most processes are dominated by waiting, queues, transport and rework, so PCE is often below 10%. Michael George’s Lean Six Sigma benchmarks put typical PCE at about 1% for machining, 10% for fabrication, 15% for assembly, 30% for continuous processes, 10% for transactional and 5% for creative work, with world-class levels of 20–80%. By Little’s law, cutting work-in-process is the main lever for shortening lead time and raising PCE.

Worked example

An assembly order spends 6 hours in value-adding work out of a 120-hour lead time, so PCE = 6 ÷ 120 = 5.00%, with 114 hours of non-value-added time. That is below the typical 15% for assembly; reaching the world-class 35% would mean a lead time of 6 ÷ 0.35 = 17.1 hours.

Sources: Quality America — Process cycle efficiency benchmarks (after M. George, Lean Six Sigma) · iSixSigma — Process cycle efficiency (PCE)

Frequently asked questions