Cycle time

Written by Fmi.Online Friday January 6, 2023
Cycle time, also called throughout time , is the amount of time required to produce a product or service. This time includes all production processes including value added time  and non-value added time.


The cycle time formula is calculated by adding the total process time, inspection time, move time, wait time, and any other time used during the production process. Basically, the equation sums all of the time from which a product is started to when it is shipped to the customer.


The process time includes all steps in the manufacturing and assembly process that actually build the product. This value added time consists of machining, design, assembly, and other processes to make a product or service. This is the only step in the cycle time that actually adds value to the product. The next three steps are necessary but don’t physically build anything. Inspection time is the number of hours spent checking partially and fully finished products for defects. Most manufacturers have multiple inspection points in the manufacturing process to ensure goods are free of defects.

In a nutshell:

  • Markets move in four phases; understanding how each phase works and how to benefit is the difference between floundering and flourishing.
  • In the accumulation phase, the market has bottomed, and early adopters and contrarians see an opportunity to jump in and scoop up discounts.
  • In the mark-up phase, the market seems to have leveled out, and the early majority are jumping back in, while the smart money is cashing out.
  • In the distribution phase, sentiment turns mixed to slightly bearish, prices are choppy, sellers prevail, and the end of the rally is near.
  • In the mark-down phase, laggards try to sell and salvage what they can, while early adopters look for signs of a bottom so they can get back in.
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