Variables
Description
What is this formula?
Cycle Time measures the average time required for a unit to move through a process from entry to completion.
It is one of the fundamental performance metrics used in Lean Manufacturing, Operations Management, and Theory of Constraints.
When to use it
Use this formula when:
- Analyzing production flow.
- Measuring manufacturing performance.
- Identifying bottlenecks.
- Optimizing process efficiency.
- Managing work-in-process inventory.
Example
A production line has:
WIP = 120 units
Throughput:
TH = 24 units/day
Formula:
CT = WIP/TH
Substitution:
CT = 120/24
CT = 5 days
Result:
A unit spends an average of 5 days in the production system.
Applications
- Lean Manufacturing
- Theory of Constraints
- Production planning
- Process improvement
- Supply chain analysis
- Industrial engineering
Note
This relationship is derived directly from Little's Law and assumes a stable process operating under long-term average conditions. Significant fluctuations in throughput or work-in-process inventory may reduce the accuracy of the estimate.