Difference Between Cycle Time & Lead Time - Local Optimization or Global Optimization? - Local Optimization Kills & Global Optimization Revives!

Difference Between Cycle Time (CT) & Lead Time (LT):

(Local) Cycle time of work item?– It is the Amount of Time a Work Item Spends in a Specific Activity or in a Defined Sequence of Activities.

In Other Words, It is the Amount of Time during which the Work Item is being Worked on in Some Stages or Go Through Parts of the Process.

For example, Local Cycle Time for Development is the Time a Work Item Spends in the Development Column.

(Global) Lead Time?– This is the Amount of Time You Spend on A Received Service Request (Features, Defects, Change Requests, Maintenance Requests, or Customized Requirements) to Fulfill the Customer Needs behind the Service Requests.

In Other Words, Lead Time refers to the Time Taken to Finish the Complete Process, from Idea to Finished Feature in Production.

We Calculate Lead Time from One Commitment Point (the Point of Accepting the Service Request) to Another Commitment Point which means the Service Request is available for Delivery or Acceptance.?

Lead Time & Cycle Time - Key Points:

• The Lead Time Shows You the Entire Process.
• The Lead Time Should be As Short As Possible So that Work Flows Quickly Through the Complete Process.
• Analyzing the Lead Time of Fulfilled Service Requests (Features, Defects, Change Requests, Maintenance Requests, or Customized Requirements) Gives You An Understanding of the Lead Time of Your Processes or Stages in the System.
• The Cycle Time Narrows Down the Focus to Only Part of It, Which Might Miss Another Part of the Process that Could Give You Valuable Information. If You are Improving Only A Part of the Process, You May Miss Some Other Bottleneck that Slows the Lead Time.
• Lead Time may help to Analyze the Efficiency of the Team.

If the Lead Times are Low – Your Team`s Performance is Good.

• High Cycle Times may Reflect the Existence of Bottlenecks & Blockers.

Low Cycle Time makes Lead Time Low.

• Low Cycle Time may Result in Good Delivery Rates & Satisfied Customers.

There are "Simple & Powerful" Ways Available in the "Lean Agile Outcome/Innovation Management, Business/Requirements Management, Product Management & Audit/Assessment Course Series" to "Visualize", "Analyze" & "Capture" the "Lead Time" & the "Cycle Time."

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