20 AN MCE OF LESS THAN 1 MEANS THAT THE TIGHT, THEN THE ONLY WAY TO...
10-20 An MCE of less than 1 means that the
tight, then the only way to generate favorable
production process includes non-value-added
labor efficiency variances is for every work-
time. An MCE of 0.40, for example, means that
station to produce at capacity. However, the
40% of throughput time consists of actual proc-
essing, and that the other 60% consists of mov-
output of the entire system is limited by the ca-
pacity of the bottleneck. If workstations before
ing, inspection, and other non-value-added ac-
tivities.
the bottleneck in the production process pro-
duce at capacity, the bottleneck will be unable to
process all of the work in process. In general, if