Glossary
TotalCumulative Manufacture Cycle Time
Tags: Glossary
The average time between the commencement of upstream processing and the completion of final packaging for shipment operations, as well as the release approval for shipment, should be calculated. WIP storage time should not be included in this calculation. The formula for calculating this time is as follows: [Average number of units in WIP] divided by [Average daily output in units], minus the WIP days of supply.
What is TotalCumulative Manufacture Cycle Time?
Total Cumulative Manufacture Cycle Time refers to the average time it takes for a product to go through the entire manufacturing process, from the start of upstream processing to the completion of final packaging for shipment. This time also includes the release approval for shipment. It is an important metric in logistics as it helps measure the efficiency and effectiveness of the manufacturing process.
To calculate the Total Cumulative Manufacture Cycle Time, we need to consider a few factors. First, we need to determine the average number of units in work-in-progress (WIP). WIP refers to the products that are currently being processed but are not yet completed. This can include partially assembled products or products waiting for further processing.
Next, we need to calculate the average daily output in units. This is the number of units that are completed and ready for shipment on a daily basis. It represents the manufacturing capacity of the production line.
Finally, we need to subtract the WIP days of supply from the equation. WIP days of supply refers to the number of days' worth of WIP inventory that a company has on hand. This is an important consideration as it helps account for the time it takes for WIP inventory to be processed and completed.
The formula for calculating the Total Cumulative Manufacture Cycle Time is as follows:
Total Cumulative Manufacture Cycle Time = (Average number of units in WIP) / (Average daily output in units) - WIP days of supply
By calculating this metric, companies can gain insights into the efficiency of their manufacturing processes. A shorter Total Cumulative Manufacture Cycle Time indicates a more streamlined and efficient production line, while a longer time suggests potential bottlenecks or inefficiencies that need to be addressed.
It is important to note that WIP storage time should not be included in this calculation. This is because the focus is on the time it takes for a product to move through the manufacturing process, excluding any time spent in storage.
In conclusion, Total Cumulative Manufacture Cycle Time is a crucial metric in logistics that helps measure the efficiency of the manufacturing process. By calculating this metric, companies can identify areas for improvement and optimize their production lines for better performance.