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Manufacturing cycle time

Manufacturing cycle time is the total elapsed time to make one unit: process time plus inspection time, move time and queue time, from the first operation to finished output.

ByHoang TruongUpdated

See it move

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A batch spends 5.0 hours in process time, 1.0 hour in inspection, 2.0 hours moving between workstations, and 12.0 hours queuing for the packing line to free up. Manufacturing cycle time sums all four: 5.0 + 1.0 + 2.0 + 12.0 = 20.0 hours, even though only 5 of those 20 hours are actually spent transforming the unit.

Where it fits
SubjectManagerial AccountingCoreTopicDivisional Performance MeasurementCoreTopicStrategic Performance & the Balanced ScorecardCore

The formula

LaTeX
TMC=Tprocess+Tinspection+Tmove+TqueueT_{\text{MC}} = T_{\text{process}} + T_{\text{inspection}} + T_{\text{move}} + T_{\text{queue}}

Variables

Manufacturing cycle time (hours)
Process (value-added) time (hours)
Inspection time (hours)
Move time between workstations (hours)
Queue (waiting) time (hours)

Adds up the four time components a unit passes through between the start of production and finished output; only process time is value-added.

Check yourself

PracticeCORE

A batch of parts has a process time of 3.5 hours, an inspection time of 0.5 hours, a move time of 1.0 hour, and a queue time of 7.0 hours before the next operation can begin. What is the manufacturing cycle time for this batch?

Select an answer to check your understanding.