From the course: Value Stream Mapping in Visio

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Cycle time and lead time

Cycle time and lead time

From the course: Value Stream Mapping in Visio

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Cycle time and lead time

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- [Instructor] At this point in time, we have our process, we have our supplier, our customer. What do we care about now? We want to understand our cycle times, our lead times. We want to understand our bottlenecks and reduce wasted activities. Reminder, what is cycle time? Cycle time measures the time it takes to complete a single task while lead time measures the time it takes to deliver our product or service to a customer. Lead time is always longer than cycle time, because cycle time is part of the lead time. In a nutshell, cycle time measures the time it takes for a team to make a product. While lead time measures the time between the customer order and order fulfillment. Lead time is always longer than cycle time, because cycle time fits into the timeline of lead time. By the time I take the physical order, say it takes 80 seconds, but by the time I actually even put the dough in the pan, it takes 160 seconds. That shows my lead time. The lead time is 160 seconds, which…

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