Question

1. Define the following terms associated with time in a process flow:
   1. Lead Time
   2. Cycle Time
   3. Takt Time
   4. Value Added Time
   5. Non Value Added Time

Answer 1

A.

Lead time refers to the time period that takes place between the initiation of a process and completion of the process in the process flow. For example, a process is started at 15 minutes and gets completed in 30 minutes. Then, lead time is 15 minutes.

It is also considered the time to complete an order when supply chain process flow is considered.

B.

Cycle time refers to the total time taken up in a process. It includes the actual process time as well as the delay or waiting time to get processed.

C.

It is the time period that is required to cater the demand of the customers. It is also referred as average time between the production of two consecutive units. For example, the unit 3 stats at 50 minutes and unit 4 starts at 55 minutes, then Takt time is 5 minutes.

D.

Value added time is a concept that explains the time period that is used to improve the product or add value to the product. In general, it is the processing time that is considered as a value added time, where raw material moves through different process steps to add value and final valued product is prepared.

E.

It is the time that is spent on activities that do not add value to the product.  For example, a product waiting in line to be processed, does not add value to the product itself. Hence, time spent in waiting, will be considered as non-value added time.