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 machine cycle time and how it relates to manufacturing process time 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.
Metric | What it measures | Example question it answers |
Cycle time | Time required to complete one unit, batch or process step | How long does this operation take? |
Lead time | Total time from order placement to delivery | How long does the customer wait? |
Takt time | Production pace needed to meet demand | How fast do we need to produce? |
Understanding how discrepancies between these metrics is key to optimizing production. For example, if cycle time is longer than takt time, production may not meet demand. On the other hand, if the cycle time is much shorter than the takt time, teams may overproduce and create a lot of unneeded inventory. Long lead times paired with stable cycle times could indicate a problem outside of the production process.
The bottom line is that cycle time should not be evaluated in a vacuum. Healthy cycle times support takt time, contribute to shorter lead times, and help manufacturers meet demand without excess inventory or unnecessary overtime.
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 cycle time calculations, as these root causes must be addressed as part of any efforts to reduce cycle time.
Why cycle time matters for manufacturing performance
By ensuring that cycle times are as short and stable as possible, manufacturers gain numerous benefits. These include higher throughput, better schedule adherence, improved capacity planning, lower operating costs, stronger customer delivery performance, and better labor utilization.
Equipment reliability is critical for cycle time, with inconsistent asset performance having a knock-on effect that makes cycle time harder to predict. Even if the equipment doesn’t fail outright, any minor stops, loss of speed or necessary manual adjustments can increase cycle time. Here are some ways in which cycle time issues can translate into measurable business impacts for manufacturers:
Cycle time issue | Business impact |
Long cycle time | Lower throughput and reduced capacity |
Variable cycle time | Harder production planning and schedule risk |
Cycle time longer than takt time | Demand may not be met |
Cycle time instability | More bottlenecks and WIP buildup |
Equipment-related delays | Downtime, speed loss and lower OEE |
Quality-related rework | Longer effective cycle time |
Need help identifying whether equipment reliability is affecting cycle time? Talk to ATS about maintenance and reliability support.
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 achieving shorter cycle times include:
- Streamline production processes: Using value stream mapping to identify delays, redundancies and bottlenecks, manufacturers should evaluate material movement, workstation layout, handoffs and approvals.
- Use proactive maintenance to reduce downtime: Preventive and predictive maintenance practices are key to keeping critical assets online for as long as possible. For equipment with recurring cycle time losses, the use of machine health monitoring provides valuable insights.
- Standardize tasks and workflows: To reduce variances that can increase cycle times, it’s highly recommended that operator’s tasks, work instructions and changeover procedures be standardized.
- Apply automation where it adds value: Repeatable, high-impact tasks should be automated whenever possible. Automated assets should receive maintenance support, reliability plans and spare parts inventory.
- Upgrade or optimize equipment: When equipment limits capacity, quality or reliability, that makes it a prime candidate for upgrading. If legacy equipment remains reliable but could use better monitoring or controls, this is a better candidate for retrofitting.
- Use dashboards and KPIs: Dashboards help manufacturers monitor cycle time alongside KPIs such as downtime, OEE, throughput and maintenance data. They also ensure maintenance teams can spot emerging trends and use that knowledge to plan their activities.
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:
- Cycle time helps identify waste related to waiting, motion, overprocessing, defects and bottlenecks
- Continuous improvement teams can use cycle time to measure whether process changes are working
- Maintenance teams can use cycle time trends to detect equipment performance degradation
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 processing 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.
Monitoring cycle time also is a core element of lean manufacturing:
- A cycle time longer than needed may indicate waste
- A cycle time that varies widely may indicate unstable processes
- A cycle time longer than takt time indicates the process may not meet demand
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.
Cycle time FAQs
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.
What is a good cycle time in manufacturing?
The ideal cycle time depends on the product type, process complexity, customer demand, takt time, and quality requirements. Manufacturers should compare their cycle times to takt time, historical performance, equipment capacity, and customer delivery expectations to establish a baseline.
Should changeover time be included in cycle time?
The short answer is that it depends on what is being measured. For example, measuring active production time per unit doesn’t need to include changeover time. However, if the objective is to understand total production flow or capacity, changeover time should be examined separately because it still has an effect on output and schedule performance.
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.
Optimize your cycle times with expert guidance
Improving cycle times is not just about making processes run faster. It also includes reducing delays, downtime, quality issues, and other inefficiencies that disrupt production. Connecting manufacturing cycle time analysis with proactive maintenance practices and machine health monitoring means manufacturers can improve throughput while also protecting quality and asset reliability.
Equipment reliability plays an important role in keeping production moving. Unplanned downtime, recurring failures and delayed repairs can all impact cycle times and overall productivity. ATS helps manufacturers identify and address reliability-related barriers through on-site maintenance support, reliability services and technology solutions designed to improve equipment performance and reduce downtime. Reach out to ATS today to discover how our solutions can streamline your cycle time.
