Total Cumulative Manufacture Cycle Time

Posted in Operations and Supply Chain Terms, Total Reads: 329
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Definition: Total Cumulative Manufacture Cycle Time

It refers to the time taken between design of a product and its completion into finished goods, ready to be shipped. In other words, it’s the time taken between beginning of processing phase and completion of packaging for shipment and approval of shipment. It doesn’t include work in progress (WIP) time.


Total Cumulative Manufacture Cycle Time can be calculated using following formula:

 

Total Cumulative Manufacture Cycle Time= (Average number of WIP)/(Average daily output)- WIP days of supply


Where, WIP is the work in progress




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