What is Cycle Time?
Cycle time is the average time it takes to produce one unit of output. It is a key metric in manufacturing and project management (Agile/Lean) to measure efficiency.
Cycle Time Formula
The basic formula is simple:
Cycle Time = Net Production Time / Units Produced
Where Net Production Time is the total time available minus any breaks or downtime.
Example Calculation
If a factory operates for 8 hours with a 30-minute break, the Net Production Time is 7.5 hours (450 minutes). If they produce 900 widgets in that time:
Cycle Time = 450 minutes / 900 = 0.5 minutes (or 30 seconds) per widget.
Cycle Time vs. Takt Time
While cycle time measures how fast you are producing, **Takt Time** measures how fast you need to produce to meet customer demand.
- If Cycle Time > Takt Time: You are producing too slowly (demand not met).
- If Cycle Time < Takt Time: You are overproducing (inventory buildup).