Cycle time is a key metric that shows manufacturers how efficiently they're running production and maintenance tasks. It is an important KPI that has been proven to help companies improve business-level outcomes, like pretax profit.
Other metrics, like throughput and lead time, can also be used to monitor efficiency, but are technically different from cycle time. This article explores everything you need to know about cycle time, including how to calculate it, how it differs from similar metrics, and what to watch for when you're trying to reduce it. You’ll also see how a CMMS can help cut your cycle times.
Key takeaways
- Cycle time is the total time required to produce one unit, from the start of production to its completion.
- Reducing cycle time improves throughput and capacity, lowers operational costs, and increases customer satisfaction by enabling faster delivery.
- Understanding the difference between cycle time and related metrics, like lead time and takt time, helps you analyze and improve the right parts of your processes.
- Good equipment maintenance cuts cycle time by preventing unexpected breakdowns and process interruptions.
- A CMMS gives you the data and tools to track maintenance efficiency and see how it improves your production cycles.
What is cycle time?
Manufacturing cycle time is the average time required to produce one unit, beginning when you start the first manufacturing task and ending when it's ready to ship. Cycle time includes both value-added and non-value-added time in your production process.
You can apply cycle time tracking to any repeatable business process. For example, you can monitor the cycle time needed for a product to pass through a specific manufacturing operation instead of considering the time required to produce one unit. Track this metric across different areas of your company, and you'll spot opportunities to streamline processes and boost performance.
You can also use cycle time to improve your maintenance schedule. For example, here are the four tasks necessary to calculate preventive maintenance cycle time:
- Create a preventive maintenance schedule
- Record equipment meter readings
- Update scheduled preventive maintenance work orders
- Update preventive maintenance status to complete
The more efficiently you and your team perform these tasks, the lower the maintenance cycle time. The lower the cycle time, the more efficient your team is, just as long as quality and safety are never at risk.
Keep in mind all the ways that lean manufacturing methodologies can be applied, such as kanban and Six Sigma, to increase production rates, product delivery, and net production time.
"Manufacturing cycle time is the interval needed to convert raw materials into finished goods. A detailed analysis of this time period can result in a significant reduction in the amount of time needed to convert a customer order into a finished product, which can represent a significant competitive advantage." Accounting Tools
How to calculate cycle time
You can calculate cycle time by dividing the total time it takes to produce a certain number of units by the number of units produced:
Cycle Time = Time to Produce Units / Number of Units Produced
For example, if your machine assembles 120 units in 8 hours, the cycle time is four minutes (or 0.067 hours) per unit:
0.067 hours = 8 hours / 120 units
Batch manufacturing calculations
This calculation differs slightly when you produce products in batches. When the cycle time remains unchanged regardless of the batch size, calculate the per-batch cycle time for the entire batch instead of a single unit.
For example, say your industrial oven processes 20 parts and takes 20 minutes to heat-treat them. In this case, the cycle time for the batch is 20 minutes.
The cycle time remains unchanged even if you process just one part because you need the same period (20 minutes) to complete the heat treatment process.
Why cycle time matters in manufacturing
Tracking and reducing cycle time sits at the heart of lean manufacturing and efficient operations. Here's why this metric matters for manufacturing operations:
- Higher production output: Shorter cycle times enable you to produce more units in the same period without adding resources
- Reduced operational costs: Faster production cycles mean lower labor costs per unit and less work-in-progress inventory
- Improved customer satisfaction: Shorter cycle times enable faster order fulfillment and more reliable delivery dates
- Data-driven improvements: Monitoring cycle time helps identify bottlenecks and focus improvement efforts where they'll have the greatest impact
For example, Electro Cycle increased their overall preventive maintenance by 30%, transitioning from a 40:60 to a 70:30 preventive to reactive maintenance ratio. This shift directly improved their production cycle time by reducing unexpected equipment failures.
Cycle time vs. throughput time, lead time, and takt time
Manufacturers use various metrics like cycle time, throughput time, lead time, and takt time to measure their productivity. These terms have some similarities, but have their unique purposes and are used in different ways to make data-driven, continuous improvement decisions. Here is a rundown of each KPI and how to use them.
Cycle time vs. throughput time
The difference between these two metrics is subtle. Throughput time measures the time it takes for a product to be manufactured entirely. Therefore, when calculating throughput time, you must include the time necessary for loading and unloading raw materials, inspection time, and any inefficiencies or bottlenecks in your manufacturing process.
Calculate throughput time by dividing inventory (the number of units included in the entire production process) by the entire amount of time the inventory units spend in production.
Throughput Time = Inventory / Time in Production
On the other hand, cycle time measures the time it takes for a product to pass through one operation. Therefore, when you measure cycle time for the entire process, it equals the throughput time. This means cycle time is lower than or equal to throughput time but never higher.
Cycle time vs. lead time
Lead time is the time between receiving a customer's order and order fulfillment. Once you receive an order, you add it to your production backlog. Then, the ordered units become part of your work-in-progress inventory.
After you complete production, you still need to package and ship it to your customer. This is when your lead time calculation stops.
You also add time spent on other actions to the point where you've fulfilled the order to your lead time. This means your lead time is never less than your cycle or throughput time.
Cycle time vs. takt time
Takt (German for pulse) time is the time you spend producing one unit to meet your current customer demand. To calculate takt time:
Takt time = Total Production Hours / Customer Demand
[Note: Total production hours excludes break time and meal time]
Manufacturers generally interpret takt time in the context of cycle time. You meet customer demands within deadlines only if your takt time is more than your cycle time. Tracking takt time helps optimize production according to customer demand—you won't end up under or overproducing inventory if you carefully monitor takt time.
How cycle time relates to overall equipment effectiveness
Overall equipment effectiveness (OEE) is a key performance indicator that measures manufacturing productivity by combining three factors: availability, performance, and quality.
Cycle time is a core component of the OEE performance score. This score compares your actual production speed against the theoretical maximum speed.
The ideal cycle time represents the fastest possible time to manufacture a single part. The actual cycle time reflects real-world production, including minor stops and speed losses.
When your actual cycle time is low and close to the ideal cycle time, your OEE performance score increases. This indicates your equipment operates efficiently and near its designed capacity.
What to keep in mind when monitoring cycle time
Before you start monitoring cycle time and looking for ways to optimize your processing time, keep the following challenges in mind:
- Supply chain problems: Supply chain challenges disrupt your logistics workflow and negatively affect your cycle time. Before you make any efforts to optimize the cycle time, prepare your supply chain workflow for the change.
- Inefficient communication: Team members on the shop floor may not have the tools to communicate effectively. The inability to collaborate on the spot makes optimizing the workflow and reducing cycle time difficult.
- Not having the right tools: What happens when a machine goes down? How long does it take to get the emergency maintenance going? Several people pass the information among themselves before it finally reaches a technician who can fix it. A CMMS changes this by keeping all emergency procedures in the cloud, accessible on any mobile device right on the shop floor.
The right preparation and a mobile CMMS can solve these challenges before they hurt your cycle times.
How a CMMS helps reduce cycle time
Whether you're tracking manufacturing or maintenance cycle time, this KPI will help you spot inefficiencies and fix them.
Keeping your vital assets running through comprehensive maintenance programs is critical to achieving production efficiency. The relationship is simple: lower downtime equals lower cycle time.
That's where a maintenance management system like MaintainX helps you set up a maintenance program, monitor maintenance tasks, and issue work orders all from one app. It's the world's first CMMS with built-in chat. This means technicians get real-time help when working on maintenance tasks.
When an asset needs repair, everyone must have quick access to the right information. For example, Ahlstrom reduced their mean time to repair from 580 to 60 hours monthly by capturing 80% of their tribal knowledge in MaintainX.
The final word on manufacturing cycle time
Mastering manufacturing cycle time is key to running efficient operations. It shows you exactly where your production is efficient and where you can improve.
The key is turning this data into action, starting with reliable equipment. Many industries still rely on outdated maintenance practices, from paper-based systems to inflexible legacy software. This makes it harder for frontline workers to stay engaged and hurts your production capacity.
MaintainX bridges this gap with a mobile-first platform built for the modern industrial workforce. Our solution helps companies like Wauseon Machine save $60,000 annually through optimized maintenance operations.
Ready to reduce your cycle time through better maintenance practices? Sign Up for Free and start building more reliable production processes.
Cycle Time in Manufacturing FAQs
For plant managers, cycle time directly affects the performance component of OEE. When actual cycle time matches your ideal cycle time, your performance score increases, indicating equipment runs at designed capacity. This helps justify maintenance investments and operational improvements.
In batch processes, calculate cycle time for the entire batch from when the first unit enters a process step to when the last unit exits. For example, if your heat treatment furnace processes 50 parts in 45 minutes, your batch cycle time is 45 minutes.
The manufacturing cycle, or manufacturing lead time, is the total time from when you release raw materials for production to when you complete the finished goods. It is a broad metric that includes all processing, inspection, movement, and wait times. Cycle time, more specifically, often refers to the time for a single operation or the average time between two completed units exiting a process.
Common factors include unplanned equipment downtime, slow setup or changeover times, material shortages, inefficient workstation layouts, lack of operator training, and quality defects that require rework. Identifying and addressing these bottlenecks is key to cycle time reduction.
A proactive maintenance schedule, such as preventive or predictive maintenance, directly reduces cycle time by minimizing unexpected equipment failures. Well-maintained assets run more reliably and closer to their optimal speed. In contrast, a reactive, break-fix approach leads to frequent, unplanned downtime, which significantly increases overall manufacturing cycle time.
.webp)
