Lean Manufacturing Metrics
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Cycle time refers to the time spent on producing a single unit of a product. This time interval starts from the initial stage of production and concludes when the product becomes complete. Cycle time may or may not takt time; if the cycle time is less than takt time, the production system would be able to fulfill demand or orders. However, if cycle time is greater than the takt time, there would be a gap between customer orders and actual production output.
Lead time represents the duration required to complete from the start of production through every stage of the production line until delivery to customers. This interval is often broken down three segments: production lead time, transfer time, and transportation or shipping time. The process time encompasses the time spent on production activities. Transfer lead time considers the time periods spent moving between subsequent stages of production. Shipping time marks the time between a fully manufactured product departing the production facility and arriving at the end customer.
These factors are interrelated and iso consulting services firm adjusts to accommodate real-time demands. Cycle time can be a factors influencing optimal production rate. Lead time essentially the efficiency of production systems to support rapid delivery after production. The optimal balance between these production metrics is crucial in maximized business results. Across lean manufacturing and agile environments, maintaining an optimal pace is a key performance indicator.
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