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Cycle Time
The first step to reducing cycle time is defining what cycle time is in a way that can be predictively and practically quantified. Cycle time (CT), which is also called average cycle time, flow time and throughput time is the average time from release of a job at the beginning of the routing until it reaches an inventory point at the end of the routing. Cycle time is directly related to throughput and WIP through Little's Law: WIP = throughput x cycle time. This relationship is key to the success of CONWIP and, in general, all pull systems. Factory Physics Inc’s years of applying science to industry has led to C-Suite's unmatched ability to quantify trade-offs, such as cycle time versus throughput versus cost.
C-Suite’s ability to identify cost effective opportunities to reduce and maintain short cycle times allows you to:
- Reduce costs
- Increase revenue
- Improve customer responsiveness
- Maintain performance flexibility through later production releases
- Improve the product quality
- Better forecasting and less reliance on forecasts
C-Suite provides measures that translate to hard dollars for evaluating the tradeoffs between cycle time and revenue as defined by Little’s Law. C-Suite software is grounded in a solid scientific foundation and well-tested through years of industry application.
C-Suite has successfully reduced cycle times. C-Suite results include cycle time reductions of 35%, inventory reduced 50% in 90 days, and a $9 million increase in cash flow. A quote from the plant manager summed it up as follows:
“There is no doubt that optimum WIP levels lead to a more efficient operation with less working capital exposure. Our customer delivery performance and our operational flexibility have improved dramatically by managing WIP levels throughout the operation." --Glenn Gerecke, Plant Manager, Bristol-Myers Squibb Pharma
