The term "processing cycle efficiency" (PCE):
A) Like manufacturing cycle time, is a measure of operational efficiency.
B) Is defined as the ratio of manufacturing lead time to delivery time.
C) Is defined as manufacturing lead time minus delivery time.
D) Is defined as the ratio of customer-response time to order-delivery time.
E) Is at an optimum level when PCE = 0.

Question

Quizplus · Accepted Answer

Processing cycle efficiency, like manufacturing cycle time, is a measure of operational efficiency. It is the ratio of the actual processing time to the total cycle time, including waiting time, inspection time, and queue time. A higher PCE value indicates better operational efficiency. None of the other options accurately describe PCE.

The Term "Processing Cycle Efficiency" (PCE)