What is Lead Time and Cycle Time how will you improve it , provide with examples.
What is Lead Time?
Lead time refers to the total time it takes for a product to move through the entire production process, from the initiation of the process to its completion.
For example, if a company takes 10 days from receiving an order to delivering the finished product, then its lead time is 10 days.
Whats Cycle Time?
Cycle time is the average time between completion of units or tasks in a production process.
For instance, if it takes 2 hours on average to complete one unit of a product in a manufacturing line, then the cycle time is 2 hours.
How to Improving Lead Time and Cycle Time?
Lead and cycle times can be improved by streamlining and removing non-value-added tasks.
Using lean production ideas like Just-In-Time (JIT) inventory management can cut down on wait times and make the flow of work more efficient.
Reducing cycle times can be done by using effective project management methods like Agile approaches that allow for faster decision-making and development iteratively.
Example of Improving Lead Time and Cycle Time
A company that makes things cuts down on wait time by using automated order processing systems that speed up order fulfilment and get rid of mistakes that happen when data is entered by hand.
An IT development team decreases cycle time by adopting Agile Scrum methodology with daily stand-up meetings for quick issue resolution and continuous improvement.
