What is cycle time

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Cycle time is a business term used to define the total time it takes to complete a business process.  This includes any activity required to produce the output including lead time, processing time and waiting time between process steps.

 As cycle time includes all activity for a process (both value add and non value add) it is an excellent KPI that can be used to demonstrate improvements to the process.  Indeed reducing cycle time is one of the most common targets of business improvement activiy.

Long cycle times can produce higher production costs, excess inventory – it can also have an impact on customer satisfaction as lenghty cycle times will result in delays to the customer.

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