Discuss the significance of cycle time to quality.
First, we should define cycle time which can be the total time from the beginning of production to completion of the product. It also can be defined as the time required in developing a product from a concept to delivery in the market. It is sometimes called lead time.
In a broader view, some might include delivery to a customer as part of cycle time in terms of cash outlay. The cash is put out at the beginning of production and not returned until the customer pays although this is often called the cash cycle time.
The important of managing cycle time is that it is costly to have products in the cycle because the company must expend funds for labor and materials that will produce no revenue until the product is sold. That cost can seriously impact any company as it strains resources to carry the process or the products before development or sale.
Imagine the cost of labor and materials for an auto company such as Ford. Every car on the line represents money spent by the company either using their own capital or through increasing loans. The use of capital will limit other activities and the use of loans will cost the company interest expense which explains the value of ...
The expert discusses the significance of cycle time to quality.