# Process Cycle Efficiency Calculator > Source: https://netray.co/tools/process-cycle-efficiency-calculator > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Calculate process cycle efficiency (value-add time as a share of total lead time) and see how much waiting dominates your flow. ## Category manufacturing ## Industry Discrete Manufacturing ## Audience - Lean practitioner - Value stream manager - Black belt - Operations manager ## Tool **Kind:** calculator **Inputs:** #### Value-added time **Key:** va_min **Type:** number **Default:** 12 **Min:** 0 **Step:** 1 **Unit:** min **Help:** Time the product is actually transformed in a way the customer pays for. #### Required non-value-added time **Key:** nva_min **Type:** number **Default:** 18 **Min:** 0 **Step:** 1 **Unit:** min **Help:** Inspection, setup share, handling that cannot yet be removed. #### Move and transport time **Key:** move_min **Type:** number **Default:** 45 **Min:** 0 **Step:** 5 **Unit:** min #### Waiting and queue time **Key:** wait_min **Type:** slider **Default:** 960 **Min:** 0 **Max:** 2000 **Step:** 20 **Unit:** min **Help:** Time the work sits between steps. #### Target PCE **Key:** target_pce **Type:** number **Default:** 20 **Min:** 1 **Max:** 100 **Step:** 1 **Unit:** % **Outputs:** #### Total lead time **Key:** total_min **Expr:** va_min + nva_min + move_min + wait_min **Format:** minutes #### Total lead time in hours **Key:** total_hr **Expr:** total_min / 60 **Format:** hours #### Process cycle efficiency **Key:** pce **Expr:** va_min / total_min * 100 **Format:** percent **Primary:** true #### Share of lead time spent waiting **Key:** wait_share **Expr:** wait_min / total_min * 100 **Format:** percent #### Lead time needed to hit target PCE **Key:** lt_target **Expr:** va_min / (target_pce / 100) **Format:** minutes **Primary:** true #### Lead time to remove **Key:** cut_needed **Expr:** max(0, total_min - lt_target) **Format:** minutes **Chart:** #### PCE (%) as waiting time changes **Type:** line **X:** wait_min **From:** 0 **To:** 2000 **Steps:** 25 **Series:** - pce ## Content **Intro:** Process cycle efficiency compares the time your product is being worked on with the time it spends in the system. In most factories it comes out in single digits, which shows where improvement effort belongs: waiting. **Sections:** #### How to use it **Body:** Take the numbers from a value stream map or a product traced through the floor. Enter value-added time, required non-value-added time, move time and waiting time for one unit or one order. The total is the lead time. PCE is value-added time divided by that total. Set a target PCE to see how short the total lead time would need to be with the value-added content unchanged. #### The formula and its benchmarks **Body:** PCE equals value-added time divided by total lead time, expressed as a percentage. It is the same ratio as the value-added ratio on a value stream map timeline. A typical discrete job shop sits below 5 percent, many assembly lines at 5 to 15 percent, and well-run flow lines at 25 percent or more. Treat these as rough guides, since they depend on how strictly you define value-added. **Bullets:** - PCE = value-added / total lead time - World-class flow is often quoted above 25 percent - Job shops are commonly below 5 percent - Define value-added from the customer's view #### Reading the result **Body:** Notice how the chart falls steeply as waiting grows. Because value-added time is usually small, cutting waiting by half often does more than any speed-up of the machine itself. Look at the wait share: if it is above 80 percent, work on batch size, scheduling and WIP limits before touching cycle times. Pair this with Little's Law to link the waiting to the WIP you hold. #### Common mistakes **Body:** Counting all machine time as value-added overstates PCE, since setup and rework are not paid for by the customer. Using standard routing times while measuring lead time from actual dates mixes bases. Measure both from the same sample. Also keep the unit consistent: one piece, one batch or one order, not a mixture. ERP order timestamps can supply the lead time, but touch time usually comes from the floor. **Bullets:** - Counting setup as value-added - Mixing routing and actual data - Inconsistent unit of measure - Using the average of orders with different routes **Cta:** Netray can help calculate lead time from ERP order dates and compare it with routed touch time, to give a PCE per product family. **Faq:** #### What counts as value-added? **Answer:** Work that changes the product's form, fit or function, which the customer is willing to pay for and which is done right the first time. Inspection, moves and setups are generally not value-added. #### Is a low PCE bad? **Answer:** It is normal and it shows opportunity. A job shop with low PCE may be appropriate for its mix. The point is to measure it, set a target and track progress by product family. #### How is PCE different from OEE? **Answer:** OEE measures machine effectiveness over planned time. PCE measures the proportion of a product's total time in the process that adds value. They answer different questions. #### How do I measure waiting time? **Answer:** Subtract touch and move time from total lead time, or track queue times between steps using order timestamps, a data collection system or a simple tag on the first order of the day. ## Search terms process cycle efficiency calculator, pce formula lean, value added ratio calculator, value stream map lead time ratio, lean flow efficiency, value add vs non value add time, process efficiency lean six sigma --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json