Manufacturing Cycle Efficiency (MCE) Definition:

Manufacturing cycle efficiency (MCE) is the Process (value-added) time as a percentage of throughput time.

OR

Quotient of the time required for value-added production divided by Total Cycle Time. It is a measure of how well a company’s manufacturing capabilities use time resources.

Manufacturing Cycle Efficiency (MCE) Formula or Equation:

Manufacturing Cycle Efficiency (MCE) = Value added time ÷ Throughput (manufacturing cycle) time

Click here to read full article about direct materials price variance.

Other Related Accounting Articles:

• Materials Quantity Variance Definition
• Materials Price Variance Definition
• Direct Materials Budget Definition
• Cycle Time Definition
• Just in Time (JIT) Definition
• Cash Budget Definition
• Direct Labor Budget Definition
• Manufacturing Overhead Budget Definition
• Accounting Principles and Accounting Equation
• Margin of Safety Definition