CYCLE TIME

In the manufacturing environment there are several variables that affect each process and their ability to directly impact the company’s profitability. One of these variables is Cycle Time. It is the heartbeat of the facility. If this is not correctly developed and managed it will create a negative impact on the bottom line. Throughout the history of manufacturing, Cycle Time remains very important. There are several ways this can be implemented in a negative way within a business. If the staff responsible for developing/managing this do not get this right, negative things will happen. This means that the entire system within the business needs to fully understand how to properly implement and manage cycle time. 

Typically cycle time development is started within the quoting process. The information that is used to derive the cycle can be pulled from a variety of sources. It can be developed off similar products that the company already manufactures. It can be developed off of known rates based on how certain materials process best. Or it can be a combination of different experiences and knowledge that flow together in order to derive the initial cycle time for quote purposes. It is even possible to back into a cycle time based on the customer demand for the product and then proceed as to what the best methods are to meet the demand. Usually there are a combination of things that get used to derive the initial cycle time for the quote. The problem is when this is not done correctly. The cycle time should never be developed by one person or group within a business. It should be a collective effort to help ensure the quality of the cycle time being used in the quote. There are several reasons for this. A company could send out a quote with a cycle time that is way out of the box, and then as a result, must recover from this sever mistake. It can ruin customer trust and relationships that ultimately lead to a business shutting down and losing money. In a lot of industries, once a customer receives a quote, they generally do not allow a “Do Over”. If your company wins business and you cannot achieve the quoted cycle time during your launch, your customer will put the responsibility and cost impact on you. Customers expect their suppliers to get this right the first time. Therefore, it is extremely important that this is developed in the proper way.

Many companies who are engaged in manufacturing have the following common groups who are typically involved within the quote process. There are Sales staff, Engineering staff, Upper management, and Manufacturing management. These groups typically work together as a team to develop the cycle time for a product being quoted. It is always better to have a checks and balance system in place to help ensure the success of the quote and the customer relationship. The collective effort of the entire team will significantly reduce the risk of there being a quoted cycle time that is way out of the box.

Once the cycle time has been developed and the quote sent over to the customer, there is typically some sort of engineering process that takes place after winning the bid. This could be a long drawn out process or as in the world of prototypes, this could be very quick and short. In this period there are generally adjustments made to the product design which can also lead to adjustments to the quoted cycle time in play. During this back and forth cadence it is important to use the proper tools that allow the Engineering team to keep the cost / price development activity neatly organized and easy to understand as it unfolds over time. If this is done in a way that is chaotic, it can result in something not being adjusted properly in the update of a quote and throw off the balance established that is needed to keep everything in the black. This is where a Quote / Engineering Change control system comes into play. This is one reason why change control systems are important. They help keep the history of changes to a product organized in a way that promotes the proper level of the design needed to achieve success in the product being Engineered. These systems can be implemented in a variety of ways, there are many different types of software that can be used to help keep the quotes properly aligned to each change along with each design revision. By doing this the manufacturing business minimizes risk associated with lack of control during this phase as the cycle time is further developed for a given product. Again, the development of each quote revision during this process – should be a team effort. There are methods that can make the quote review quick and easy so that it does not tax the business. Part of the engineering process is to also work with manufacturing in validating the derived cycle times during the pre-production / prototype builds that occur before getting to the launch phase of production.

Once the Engineering phase has been completed and the product has been launched into production it is time for the production team to stabilize the production rates and enter into a consistent rhythm. The involvement of the Manufacturing team within the quote process, helps them achieve this goal with a much higher rate of success. The Manufacturing Team is responsible for achieving the cycle times once fully developed and then maintaining them during the entire life of the product. This activity can make or break a company if not properly implemented. Time is Money. In the example of an Injection Molding plant, the real thing for sale is the Injection Molding Machine time. If this is not managed properly the plant will lose money. It is important that the plant has clear systems in place to help maintain steady consistent processes that lead to consistent cycle times. One way to do this is by regularly auditing your cycle times daily. There are a couple of ways to monitor this. Manual time studies can be performed. Scrap and production rates can be monitored to help control the rates. MRP Software can be connected through an IT network to the production equipment to help the manufacturing staff manage the production KPIs. These tools along with several other manufacturing variables can be used, monitored, and adjusted to help maintain cycle time and profitability.

Cycle time is very important to all manufacturing businesses. The development and management of this calculation directly impacts the success of any manufactured product and can negatively impact the bottom line if it is not managed properly. Cycle time is the central heartbeat to all manufacturing facilities and needs to be properly implemented.