Process Cycle Efficiency

Process Cycle Efficiency is a Lean Six Sigma metric useful for prioritizing improvement
opportunities. Process Cycle Efficiency is calculated by dividing the value-added time
associated with a process by the total lead time of the process.

Process Cycle Efficiency = Value-Added Time / Lead Time

If the process consists of only value-added activities, then the Process Cycle Efficiency
would reach a theoretical maximum of 100%. In practice, Process Cycle Efficiencies will
exceed 25% for processes that have been improved through the use of Lean methods.
Typical Process Cycle Efficiencies are shown below for various processes.

The key to improving Process Cycle Efficiency is to reduce the Lead Time , the denominator
of the equation, such as through level loading (i.e. balancing the process takt times).

Typical Cycle Efficiencies (ref: Lean Six Sigma, by M. George, 2002, McGraw Hill)

Process Type Typical Efficiency World Class

Efficiency

Machining 1% 20%

Fabrication 10% 25%

Assembly 15% 35%

Continuous 30% 80%

Transactional 10% 50%

 Creative 5% 25%

Learn more about the Lean Six Sigma principles and tools for process excellence in Six
Sigma Demystified (2011, McGraw-Hill) by Paul Keller, in his online Lean Six Sigma DMAIC
short course ($249), or his online Green Belt certification course ($499).

Since 1982: The art & science to

improve your bottom line
Quality America offers Statistical
Process Control software, as well
as training materials for Lean
Six Sigma, Quality Management
and SPC. We embrace a
customer-driven approach, and
lead in many software
innovations, continually seeking
ways to provide our customers
with the best and most
affordable solutions. Leaders in
their field, Quality America has
provided software and training
products and services to tens of
thousands of companies in over
25 countries.
Process Cycle Efficiency
Process Cycle Efficiency is a Lean Six Sigma metric useful for prioritizing improvement
opportunities. Process Cycle Efficiency is calculated by dividing the value-added time
associated with a process by the total lead time of the process.

Process Cycle Efficiency = Value-Added Time / Lead Time

If the process consists of only value-added activities, then the Process Cycle Efficiency
would reach a theoretical maximum of 100%. In practice, Process Cycle Efficiencies will
exceed 25% for processes that have been improved through the use of Lean methods.
Typical Process Cycle Efficiencies are shown below for various processes.

The key to improving Process Cycle Efficiency is to reduce the Lead Time , the denominator
of the equation, such as through level loading (i.e. balancing the process takt times).

Typical Cycle Efficiencies (ref: Lean Six Sigma, by M. George, 2002, McGraw Hill)

Process Type Typical Efficiency World Class

Efficiency

Machining 1% 20%

Fabrication 10% 25%

Assembly 15% 35%

 Continuous 30% 80%

Transactional 10% 50%

Creative 5% 25%

Learn more about the Lean Six Sigma principles and tools for process excellence in Six
Sigma Demystified (2011, McGraw-Hill) by Paul Keller, in his online Lean Six Sigma DMAIC
short course ($249), or his online Green Belt certification course ($499).

Since 1982: The art & science to

improve your bottom line
Quality America offers Statistical
Process Control software, as well
as training materials for Lean
Six Sigma, Quality Management
and SPC. We embrace a
customer-driven approach, and
lead in many software
innovations, continually seeking
ways to provide our customers
with the best and most
affordable solutions. Leaders in
their field, Quality America has
provided software and training
products and services to tens of
thousands of companies in over
25 countries.