Make Cycle Time

Make Cycle Time measures the average time required to process orders in the Make process. It measures portion of the Order Cycle Time the order is in process in Make. It does not include the time the order is waiting for Source processes to complete.

Contents

Calculation

Make Cycle Time
=
 n Σ (Transfer Date – Availability Date + Routing Date – Order Date) i=1
n

where

• Transfer Date = The date/time the production order was completed and products were transferred to next process (generally the D process).
• Available Date = The date/time the all materials required for the production order were transferred by the source of the supply.
• Routing Date = The date/time the requests for all materials have been requested from the sources of supply (for example the date/time on the Purchase Requisition for a Buy product)
• Order Date = The date/time the production order was received

Unit of measure: Days (Calendar days)

Importance

Make Cycle Time provides insights into the average time the Make process requires to fulfill orders. For Make-to-Order and Engineer-to-Order supply chains this helps identify where delays occur in the overall Order-to-Cash Cyle (RS1) experienced by customers.

Notes

A rough approximation of Make Cycle Time can be calculated by measuring the time between production order creation and completion minus the Sourcing Cycle Time.

Community Importance Rating:
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Hierarchy

IDNameLevelx
RS1Order Cycle Time1RS1
RS13Make Cycle Time2RS13

Process(es)

IDNameLevelx
P3Plan Make2P3
M1Make-to-Stock2M1
M101Create Schedule3M101
M102Issue/Stage Materials3M102
M103Produce3M103
M104Inspect3M104
M105Package3M105
M107Transfer3M107
M2Make-to-Order2M2
M201Create Order3M201
M202Schedule Make Orders3M202
M203Issue Materials3M203
M204Produce3M204
M205Inspect3M205
M206Package3M206
M208Transfer3M208
M3Make-To-Engineering-Order2M3
M301Create Project Order3M301
M302Complete Order Engineering3M302
M303Schedule Resources3M303
M304Issue Resources3M304
M305Produce3M305
M306Inspect3M306
M307Package3M307
M309Transfer3M309
M401Create Work Order3M401
M402Schedule Work Orders3M402
M403Issue Product3M403
M404Examine3M404
M405Issue Material3M405
M407Inspect3M407
M408Repackage3M408
M410Transfer3M410

Term(s)

IDNameClearx
O2COrder-to-CashO2C
Make Cycle Time Order Cycle Time 21300 2 Responsiveness, Production, Maintenance, Repair, Work Order, Production Order, Make, Cycle Time, Lead-time, Supply Chain The average time required to process orders in the Make process. It measures portion of the order cycle time the order is in process in Deliver