The Importance of reducing cycle time

No matter what industry you work in, having a shorter cycle time has many advantages. Fortunately, it’s fairly easy for manufacturers to manage their cycle time. From increased rates of customer satisfaction to lowering operating costs, shortening the production cycle time also provides many benefits, as C Tek Lean Solutions can explain.


What is Cycle Time (CT)?

CT is the time it takes for a product to pass through the manufacturing process. It is related to the start rate in fabrication, along with the number of units that are processed at a given time. Collectively, the cycle is called work in progress (WIP). Naturally, reducing CT impacts the entire WIP process.


Higher Volume of Product Output

Having lower CT rates per start rate can reduce volume of WIP overall, which increases product output. If the company encounters problems with manufacturing output, including delays, having a higher product output translates to less impact on product availability and delivery for consumers.


Product Innovation

Companies that learn to control CT see positive economic benefits. That applies to both large and small companies. Reducing CT rates allows companies to focus on quality production. The cost savings gained by a higher product output and a leaner manufacturing cycle also opens the door of possibility for trying out new products. Companies with lower CT rates can turn their attention to developing prototypes or samples for consumers, which allows them to bring novel products to the market before their competitors.


Improved Distributor Relationships

While improving CT has direct benefits in-house on the manufacturing floor, it can also have a positive impact on external relationships. Many manufacturers provide their products to distributors once they come off the assembly line. The distributors, in turn, sell the products to customers. Shortening CT time allows companies to generate more products in a shorter amount of time, which in turn improves distributor satisfaction. Reliability and market share may also increase as a result.


Increased Productivity

Increased productivity is another advantage of reducing CT. Along with increasing the volume of product output, manufacturers will also see an increase in worker productivity when they reduce CT rates. A workforce that can produce goods more rapidly translates to a higher volume of product output, which creates higher levels of productivity overall.


Greater Profitability

Turning out more products in less time translates to an increase in profit margins for manufacturers. Shortening the production cycle time also uses fewer raw materials and necessitates less working hours for employees, which in turn reduces labor costs. Minimizing CT while following the principles of lean manufacturing involves analyzing each process and step in the production cycle, which provides more opportunities to identify cost savings and lower the price of products.


Increased Customer Satisfaction

Shortening the time it takes to bring products to market also makes customers happier. Salespeople have an easier time meeting customer demands and expectations if they know that their company consistently produces enough products and does so in a timely manner. Customer satisfaction rates increase as a result, along with a company’s dependability ratings.

From saving money to generating more sales, controlling cycle time has numerous advantages. Contact C Tek Lean Solutions for more details.