Let\u2019s suppose that the average cycle time is measured by excluding non-working hours as well as weekends. On the basis of the past data of our workflow, the estimates show that our usual cycle time comprises of 8 days. Now in case a customer places an order, their exact expectation of delivery time will be 8 days precisely. On the other hand, our cycle time is estimated just for working hours. In this case it means the delivery can be made after 12 days when the weekends are included as well. In the given scenario, the work will be completed according to our planned schedule from our point of view. However, the actual work will be delayed from the point of view of customers. In contrast, if the cycle time of our given tasks is calculated by counting non-working hours which also takes account of weekends, we will be in a better position to fulfill or even go beyond the expectations of our customers.<\/p>\n

To calculate the measurement, divide value-added production time by total cycle time. This information can be used by an organization so that non-value-added activities can be removed. In this manner it is possible to decrease our costs and reduce the manufacturing time of our products. More to the point, both outcomes can become competitive advantages for our business, as we can lower the costs while sustaining good profits and providing quicker shift times to the customers as well.<\/p>\n