And without calculating cycle time, you would be left in the dark about where the problem(s) truly lies. These are all questions you can ask yourself to get to the root of the problem. Do you have enough products to make a completed desk? Do you have enough people on the line? Is the machine available to run? Do you have boxes to send the desks to the schools in? There may be other processing problems going on that are slowing things down. This indicates a much larger problem that needs to be addressed in order to meet demand. In fact, you’ve only made 10 desks (actual cycle time). But, again, you determine you’re making less than the target. In the end, you only need to produce 15 to meet demand. But, in theory, your machines and people are capable of making 20-30 per hour (theoretical max machine cycle). If you can make 15 desks an hour, you will be able to deliver on time to the schools (target cycle time). The company you work for makes desks for elementary schools. In another example, you are a furniture manufacturer.
Now, you may begin to understand why using a blanket term of “cycle time” to describe the production process can be confusing if the KPIs aren’t clearly defined. That’s the difference between the 3 terms. You know you only need to bottle 732 to deliver on time to your customers (target cycle time) but are you hitting that target? Based on production numbers, you determine you’re only bottling 711 bottles per minute (actual cycle time). But, you know you aren’t actually bottling 784 bottles a minute. How fast does the machine really run over a period of time? Using custom equipment that bottles beer, you know the machine can theoretically bottle 784 bottles per minute (theoretical max machine cycle) and that’s as fast as the filler can go. Using an example to better explain, let’s say you’re a bottling company. Actual Cycle Time – Time it takes to produce an actual number of parts or complete a “cycle” Target Cycle Time – Time you would need to hit to deliver a product on time to customers (or downstream processes)ģ. Theoretical Max Machine Cycle – Maximum number of parts a machine can produce in a particular time periodĢ. There are typically 3 terms used to represent a cycle time, and as we said before, defining those terms varies from manufacturer to manufacturer.ġ. The short answer is yes, but we’ll dive into more detail. But, confusingly enough, that same term is also used to reference the entire process – from start to finish. Some machines produce multiple parts per cycle while others only produce one.Įssentially, cycle time is how long it takes to complete a job.
(Don’t get Cycle Time confused with Takt Time, though, which is a pretty common mistake.)Ĭycle Time: This is how long it takes to make a part or how long it takes the machine to complete a cycle. Fortunately, it is easy to calculate and understand. It is also a critical part of the OEE calculation ( use our OEE calculator here). It is used by ERP and MES systems for scheduling, purchasing and production costing. The Cycle Time Formula is an essential manufacturing KPI to understand in manufacturing. “Flow is at the heart of the lean message that shortening the elapsed time from raw materials to finished goods (or services) will lead tot he best quality, lowest cost, and shortest delivery time.” However, accurately setting cycle time to monitor and measure the entire production process is key to success for manufacturers. Let alone the fact that it can be hard to calculate on the floor given all of the factors that contribute. Every manufacturer defines and measures it differently, adding to the confusing nature of applying cycle time from one company to another. Cycle time is a contentious topic, not because it doesn’t provide value to manufacturers, but because the definition of cycle time is widely debated.