Total Make Cycle Time

Posted in Operations and Supply Chain Terms, Total Reads: 287

Definition: Total Make Cycle Time

It is the total processing time taken from upstream process till the material is ready and completely made. This total time is called total make cycle time. It is measured by a stop watch. The time taken for entire process to complete from start to finish in making the product is called cycle time.

It is actually reciprocal of throughput as throughput is essentially number of units/time while cycle time is time/unit.

It is a useful metric for measuring operational efficiency. For example, if you want to improve the delivery capabilities of your software development team, your cycle time measurement will track the time it takes for you from starting to delivering. It should be minimized as far as possible to increase productivity as you will be able to deliver more goods/services in same time.

A number of additional benefits can be obtained by reducing the make cycle time. Some of them are:

1) Improved profitability due to cost savings

2) Competitive advantage by your products reaching the markets sooner

3) Better understanding of cost structure


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