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What is Cycle Time?

The actual elapsed time required to complete one unit or one operation in a production process.

Definition

Cycle time is the time it takes to produce a single unit or complete a single operation, measured from start to finish of that step. It is a fundamental operational metric used to assess line balance, throughput, and capacity, and it differs from lead time, which spans the entire journey from order to delivery including queue and wait time. In lean manufacturing, cycle time is compared against takt time to ensure production can meet demand without overproducing. Reducing cycle time, by cutting setup, eliminating waste, or improving flow, increases capacity and shortens delivery without adding resources.

How Cycle Time Works in ERP

ERP and shop floor systems capture actual operation times as work is reported, letting the system calculate cycle times and compare them to the standard times stored in routings. Variances between actual and standard cycle time drive efficiency reporting, scheduling accuracy, and continuous-improvement priorities. Accurate cycle-time data also feeds capacity planning and realistic delivery-date promising.

ERP Vendors with Strong Cycle Time

Frequently Asked Questions

What is the difference between cycle time and lead time?

Cycle time is the actual time to complete one unit or operation of work. Lead time is the total elapsed time from when an order is placed to when it is delivered, including queue, setup, processing, and wait time. Lead time is almost always longer than cycle time because it includes non-value-added waiting that cycle time excludes.

Why does cycle time matter for an ERP?

Accurate cycle-time data lets the ERP schedule realistically, plan capacity, and promise reliable delivery dates. By comparing reported actual times against routing standards, the system surfaces efficiency variances and bottlenecks for improvement. Cycle time also feeds metrics like OEE and supports lean comparisons against takt time.

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