What Is Total Make Cycle Time?
The total make cycle time or total manufacturing cycle time measures the total amount of time from when an item is ordered to when the item is completed and delivered. This measure includes all the processes involved in producing the item, including planning, design, manufacturing, quality control, assembly, shipping, and delivery. The total time is usually expressed in days or weeks and can be used as a measure of efficiency and to help identify areas for improvement in the production process.
Significance of Total Make Cycle Time in Logistics and E-commerce
In logistics and E-commerce, the total make cycle time is an important metric for measuring efficiency and cost-effectiveness. Let’s have a look at its importance:
1. Total make cycle time measures the total time taken from starting a manufacturing process to completing the same.
2. Total make cycle time identifies the inefficiency in the manufacturing process and optimizes it for better performance.
3. It measures the performance of the supply chain and logistics networks, enabling companies to improve their operations and better serve customers.
4. Total make cycle time helps to identify potential bottlenecks in the manufacturing process and take steps to reduce or eliminate them.
5. It keeps track of inventory levels and prevents stock-outs, resulting in better customer service and satisfaction.
Prerequisites of Total Make Cycle Time and How It Works
Total make cycle time includes both direct labor and machine time. The following provisions are necessary to calculate the total make cycle time:
1. A detailed breakdown of the individual steps involved in the manufacturing process. It should include all labor and machine operations, setup, re-tooling, and quality control.
2. Accurate timing for each step of the process. It involves the total time for each operation and the cumulative time from start to finish.
3. Understand the product’s design and the number of units needed. It will help determine the time necessary to complete the manufacturing process.
Use Cases of Total Make Cycle Time
Suppose a company may need to source raw materials, manufacture the product, package it, and ship it to the customer. The total make cycle time would include the time it takes to complete these steps. This cycle time is important for optimizing efficiency and reducing costs in the logistics industry.