Time is money, and any manufacturer interested in saving money should start by examining how they spend their time. One of the most important ways time can have an impact on the profitability of any manufacturing operation is understanding the concept of cycle time. This is a critical KPI when it comes to ensuring the most efficient and cost-effective operations. Keeping a close eye on cycle time can be the key to help manufacturers improve their throughput, lower their operating costs and remain competitive in the marketplace.
What is cycle time? In the simplest of terms, cycle time refers to the length of time it takes for a single product’s manufacturing process to be completed. It also can be broken down into units based on how long it takes for a single element of the process to be executed. For example, it can refer to how long it takes a worker on an automotive production line to complete a weld between body panels. It also can express the amount of time required for an automated assembly unit to place microchips on a circuit board for consumer electronics.
Even when cycle time is measured in a matter of seconds, it’s still critically important to monitor. Every action along the production line adds to the total time needed to get a product out the door and into the hands of customers. Shaving just a half-second off cycle time in a single area can lead to significant improvements in terms of throughput and overall productivity, reducing the overall cycle time and helping the manufacturer meet demand. Manufacturers who don’t pay attention to their cycle times may not be able to keep up with the competition, which is why it pays to understand cycle time and how it relates to the manufacturing process as a whole.
Cycle time vs. lead time vs. takt time
One of the biggest mistakes manufacturers can make when assessing their cycle times is getting the concept confused with lead time. Many companies use these terms interchangeably when they actually describe different things. Lead time is generally understood as the length of time it takes for a company to fulfill an order. From the moment a customer places an order, the clock for lead time begins, and it doesn’t stop until the customer receives that order. Although manufacturing cycle time makes up a significant portion of an order’s lead time, it’s far from the only element. Other aspects such as sourcing parts or materials, packaging and logistics also factor into the overall lead time for an order.
In recent years, the term “takt time” has become used throughout the industry as lean manufacturing principles have taken hold. Takt time describes the amount of time each unit should take to complete in order to meet the current customer demand. This means the concept of takt time relates closely to cycle time, as the two metrics should be as close to each other as possible to ensure manufacturers are able to keep up with demand. Any discrepancies found between takt time and cycle time need to be rooted out and rectified to keep operations on track to be as profitable and successful as possible.
How to calculate cycle time
When talking about cycle times in terms of individual manufacturing activities, measuring them is relatively simple. All you need to do is observe how long it takes the product to leave the cell and move along to the next step once it enters. But calculating overall cycle time is just as critical for understanding how effective and efficient your entire operations are, and this requires a specific formula:
Cycle Time = Complete Production Time / Number of Units Produced
For example, a factory may have a production run of 100 units that goes from raw materials to finished products over the course of six hours. This means that the total cycle time would be 360 minutes divided by 100 units, or 3.6 minutes per unit. Note that the amount of time for the production process should not include any scheduled breaks such as during changeovers or shift changes. These interruptions, when no work takes place by design, can skew the numbers for certain periods of time and cause manufacturers to focus their attention on the wrong areas. However, any unexpected downtime caused by equipment failures or human error should be factored into the calculations, as these root causes must be addressed as part of any efforts to reduce cycle time.
What causes long cycle times?
If you’ve calculated your cycle time and found it’s unacceptable, the next step is to figure out why. This can be easier said than done, as there are a number of inefficiencies and other issues that can drag cycle times beyond acceptable levels. Some of the most common of these concerns include:
- Machine downtime: Perhaps the most obvious thing that can have a negative impact on cycle time is an equipment breakdown. Machinery that fails unexpectedly means everything grinds to a halt as teams work to bring it back online as quickly as possible. Although in some cases equipment failure is inevitable, many other times it can be prevented through proper maintenance practices.
- Lack of automation: Relying on manual labor for certain elements of the production process can lead to longer cycle times. This is because human workers can become fatigued, distracted or make mistakes that require time to correct.
- Bottlenecks: If there are inefficiencies built into your production flow anywhere, they can have a negative effect on your cycle times. For example, a lack of capacity can force multiple production lines into the same station, which means a backup of product that leads to longer-than-ideal cycle times. Proper bottleneck analysis can root out these inefficiencies and suggest ways to eliminate them.
- Poor maintenance practices: Keeping equipment online for as long as possible is crucial for cutting down cycle times. Unfortunately, not all manufacturers take this to heart. They may not have predetermined schedules for routine tasks, fail to take advantage of advanced analytics to anticipate potential failures or schedule maintenance at inopportune times. This is why having the right maintenance protocols in place is essential for managing cycle times.
How to reduce cycle times
Improving your cycle times means being aware of how process optimization in manufacturing can help you. Some of the best practices for reducing cycle times include:
- Streamlining your production processes by eliminating inefficiencies
- Using proactive maintenance practices to reduce downtime
- Standardizing tasks and adopting automation whenever possible
- Upgrading equipment to boost speed and efficiency
- Visualizing processes through a dashboard to observe KPIs
The role of cycle time in lean and continuous improvement
As one of the most important metrics for manufacturers, it’s easy to see what makes cycle time so critical for driving lean and continuous improvement efforts. Without a clear understanding of your cycle times, other mission-critical metrics such as Overall Equipment Effectiveness (OEE) won’t be as accurate or useful as they can be. This is why watching cycle times is crucial not only for knowing how effective your operations are now, but also for making adjustments that can make you more effective in the near future.
How predictive maintenance helps improve cycle time
Through the use of machine sensors and advanced analytical software, predictive maintenance seeks to prevent breakdowns. Watching for signs of wear, technicians schedule their work around which components and machines are most likely to need attention. The purpose of this is to keep equipment online and at optimal efficiency for as long as possible. This helps keep cycle times manageable by preventing unexpected delays. Working with an experienced maintenance provider like ATS means you can have the expertise and predictive maintenance solutions you need to ensure the smoothest production.
Frequently asked questions about cycle time in manufacturing
Is faster always better when it comes to cycle time?
All other things being equal, faster processes are always best for cycle time. However, it’s important to keep in mind that speeding up your production rate can have a negative impact on the quality of your finished products. Remember that when it comes to satisfying your customers, speed isn’t everything.
Can cycle time be applied to batch production?
Yes, cycle time still applies when talking about batch production in which a number of items are completed at the same time. Instead of calculating the time spent per individual unit, cycle time is measured by determining the total time required to complete one entire batch.
How do I know if my cycle time is healthy?
The easiest way to determine whether your cycle time is adequate is by comparing it to your takt time. Of course, you also can keep a close eye on your lead time. Ultimately, the best resource is to always check with your customers and make sure you’re meeting their expectations.
Reach out to ATS today to discover how our solutions can streamline your cycle time.
