What is Cycle Time?
The total elapsed time from the start of a process or task to its completion.
Detailed Explanation
Cycle time measures how long it takes to complete one unit of work from beginning to end, including both active work time and any waiting or idle time. It differs from processing time, which only counts the time spent actively working. For example, a task might have a processing time of two hours but a cycle time of three days if it sits in queues between steps. Reducing cycle time often involves eliminating wait states, improving handoffs, and reducing batch sizes rather than making people work faster.
Why It Matters
Long cycle times mean slow delivery to customers, more work-in-progress inventory, and greater exposure to changing requirements. Shorter cycle times improve cash flow (you invoice sooner), increase customer satisfaction, and give your business a significant competitive advantage.
Example
A building certification company measures that their average report cycle time is 12 business days, but the actual assessment and writing work only takes 4 hours. By restructuring their workflow to eliminate queue times between review stages, they reduce cycle time to 3 business days.
Related Terms
The total time from when a customer places a request until the request is fully delivered.
The rate at which a system or process produces output over a given period of time.
A point in a process where the flow of work is restricted or slowed, limiting the overall throughput of the system.
Need Help With Your Operations?
Our team specialises in building the systems, SOPs, and processes your business needs to run without you.