The Short Answer

What Is Cycle Time?

Cycle time is the working time it takes to complete one unit of work once processing starts, from the first step to the last. It does not include time spent waiting in line before work begins. Time a job sits between steps is measured separately as wait time, and lead time is the full time from order to delivery.

In Plain English

How Long the Work Takes Once It Starts

Cycle time is how long the work takes once someone starts on it. Time spent waiting in line before it starts is not cycle time.

Most owners guess. A guess turns into due dates, prices, and a daily capacity number. Time the work, and all three get better.

A Real-World Example

The Print Shop That Timed One Order

Illustrative example

A print shop in Denver, Colorado times a standard order: setup 15 minutes, printing 40, cutting 20, and packing 10. The cycle time, meaning the working time, is 85 minutes.

The same order also waits 2 days in line before setup and about 30 minutes between printing and cutting. Lead time includes all of it. Once the owner sees the split, she stops promising next-day orders the line cannot deliver.

From Dr. Paul’s Fabled Forest

Blueprint Bella and the Sand Timer

Doctor Owl was at the clockmaker’s, leaving his pocket watch for a cleaning, when Blueprint Bella stomped in.

“My crew is slow,” she said. “Every dam takes forever.”

“How long does each step take?” Doctor Owl asked.

Bella blinked. She had never timed a job. “Measure twice, cut once, measure again,” she said, out of habit.

Doctor Owl bought a small sand timer from the clockmaker and handed it to her. “Then measure the time, too.”

On the next small dam, Bella flipped the timer at the start of every step. Hauling, notching, and stacking were all quick. Cutting the logs took three times longer than anything else.

The crew was not slow. The saw was dull. Bella had it sharpened that afternoon.

Want more lessons like this? This story comes from Book 3 of Dr. Paul’s Fabled Forest Business School Series.

Dr. Paul’s Insight

Dr. Paul has clients time the work before they promise dates or set prices.

Put It to Work

Timing a Job, Step by Step

Illustrative print order:

StepWorking minutesUses the printer?
Setup15Yes
Print40Yes
Cut20No
Pack10No
Cycle time (working time)85

Measured separately: the queue before setup (2 days) and the wait between steps (about 30 minutes). Lead time = queue + cycle time + waits.

Capacity, with the assumptions shown

One shared printer and one 8-hour shift, minus 60 minutes for breaks and changeovers, gives 420 printer minutes a day. Each order needs 55 printer minutes (setup plus printing). Printer capacity is about 7 orders a day, even with two operators, because cutting and packing can overlap but the printer cannot.

How to measure: time five jobs, use the average, and note the slowest step.

Watch Out

Pitfalls When Measuring Cycle Time

Watch OutGuessing instead of timing

Owners usually underestimate their own work.

Watch OutCounting the queue as cycle time

Time waiting before work starts is a scheduling problem, not a speed problem.

Watch OutTurning minutes into capacity without checking shared equipment

Two people cannot both use one printer at the same time.

Watch OutNever re-timing after a change

New tools and new staff change the numbers.

Why It Matters

Benefits of Knowing Your Cycle Time

  • Realistic due dates
  • A clear target for improvement
  • Better pricing for labor
  • The slowest step in plain view

In Your Business Plan

How Cycle Time Shows Up in a Business Plan

Lenders want to see that the sales forecast fits what the operation can produce. Timed cycle times are the foundation of that capacity number.

Sample plan excerpt: Operations, Capacity

“Average cycle time for a standard order is 85 minutes of working time, of which 55 minutes use the single printer. With one 8-hour shift and 60 minutes of breaks and changeovers, printer capacity is about 7 standard orders per day. A second printer is planned when demand exceeds 6 orders per day.”

FAQ

Questions Owners Ask About Cycle Time

What is the difference between cycle time and lead time?
Cycle time is the working time once a job starts. Lead time is the full time the customer waits, from order to delivery, including time in line and time between steps. Lead time is almost always longer.
How do you calculate cycle time?
Time each step of the work from the moment it starts to the moment it ends, add the steps together, and repeat for several jobs. Use the average. Leave out time the job spends waiting before work begins.
How can a small business reduce cycle time?
Find the slowest step and fix it first. Common fixes include better tools, setting up before the job starts, removing steps that add nothing, and training so every person does the step the same way.

More From the Series

Keep Building Your Business

Every book in Dr. Paul’s Fabled Forest Business School Series teaches one subject through short stories, real terms, and one-page worksheets.

Dr. Paul Borosky, DBA, MBA

Dr. Paul is a business consultant and author with 14+ years of experience and 1,000+ written business plans. He works with owner-run small businesses on plans, financial projections, and the systems that let a business run without the owner doing everything. This page is part of the glossary for Operations for Small Businesses, Book 3 of Dr. Paul’s Fabled Forest Business School Series.

This page is for general educational purposes only. It is not legal, safety, accounting, or other professional advice. For decisions about your own business, consult a qualified professional.