How is Manufacturing Cycle Efficiency Found?

The manufacturing cycle efficiency facility is the amount of value-added production time divided by the total cycle time used for a task. For example, when manufacturing a new product, you would want to start by measuring the total amount of time that is spent on making the product from the moment its production begins until it is shipped out of the facility. You would then also need to know how much of that time is actually adding value.

Determining the total amount of time a product spends at a facility is quite easy. Figuring out how much of that time is adding value, on the other hand, can be quite a challenge. When it comes to manufacturing new products, value-added time would include things like the time where the product is actually being assembled, when it is being painted, and more.

Any time that is spent on the product that doesn’t add value, should be seen as a type of waste. For example, transporting a product between two machines does not add value. Storing the product on a shelf until it can be finished or shipped is also not adding any value. Once you have calculated these numbers, you can determine the manufacturing cycle efficiency of the product. This will give you a good starting point for measuring this efficiency over time, which is critical.