What is production cycle? 4 ways to reduce production cycle

What is the production cycle?

The production cycle includes all activities involved in transforming raw materials into finished goods. Each production cycle has its own elements related to product and goods design, combined with production schedules and actual operations, including cost accounting feedback.

In each area of ​​the production process, departments will be responsible for managing each separate area, such as: Technical department, production department, material management department, and accounting department. Enterprises can calculate the production cycle for each department, product detail or finished product, based on the implementation time, including the time off according to the regime and time in production.

Why is it necessary to calculate production cycle?

Meaning of production cycle index:

• Production cycle is an important indicator that needs to be determined to estimate order fulfillment time and schedule planning.
• The production cycle shows the level of technology and production organization. A short production cycle shows the efficient use of machinery, equipment and production area.
• Production cycles affect working capital requirements and the efficiency with which capital is used in the production process. In a volatile competitive environment, short production cycles enable the production system to respond quickly to changes.

The formula for calculating the exact production cycle

The formula for calculating the production cycle is determined as follows:

Tck = Σtcn + Σtvc + Σtkt + Σtgd + Σttn

In there:

• Tck: Cycle time (in hours or days and nights)
• tcn: Time for technological process
• tvc: Shipping time
• tkt: Test time
• tgd: Downtime at work points and intermediate warehouses
• ttn: Natural process time

How to reduce and optimize production cycle

Calculate the cycle times of existing production processes

Understanding current cycle times is a critical first step in the optimization process. Even when data is collected manually, raw cycle times are a good starting point. This is closely related to a company’s overall equipment effectiveness (OEE). However, in companies that manage data manually, OEE is often overestimated.

Reduce waste

Once the manufacturing process is mapped in detail and current cycle times are understood, improvement teams can begin to eliminate waste that negatively impacts cycle times. Common types of waste include:

• Quality issues: Defective goods are not detected in time before completion or need to be reworked to meet quality standards.
• Too much manual paperwork: Using error-prone or unnecessary documentation.
• Non-value-added work: Activities that do not directly contribute to the value of the final product.
• Overproduction: Production in excess of actual demand.
• Poor production: The product does not meet the required quality from the beginning.
• WIP staging and internal transportation: Improper arrangement of pending materials and internal transportation or suboptimal machine layout.

Process Automation

Automation is an effective way to optimize repetitive tasks in the manufacturing process. Nowadays, there are many technological solutions that can replace routine manual work. This not only reduces the burden on workers, but also brings stability and predictability, making it easier to calculate production cycle times.

However, automated processes cannot always operate faster than skilled operators. The two main disadvantages of automation are investment costs and loss of flexibility.

The initial investment in an automation system is a large expense that manufacturers need to recover over time. In addition, most automation equipment is often not easily moved or adjusted after installation, leading to a loss of flexibility in the production process.

Applying new technologies

Businesses today can apply advanced technologies and software to optimize production cycle time, thereby improving efficiency and productivity.