ORDER CYCLE TIME

The order cycle contains all the time related events that make up the total time required for a customer to receive an order.

Cycle time has become the key measurement tool for the performance of a number of leading The order cycle contains all the time related events that make up the total time required for a customer to receive an order.

Cycle time has become the key measurement tool for the performance of a number of leading edge management concepts, including supply chain management (SCM), just-in-time (JIT) management, enterprise resources planning (ERP), theory of constraints management, and lean management. Cycle time improvements in any of these areas have been linked to reduced costs, reduced inventories, and increased capacity. The resource areas that are measured by cycle time include the measurement of financial flow, materials flow, and information flow. In each case, a delay or failure of any of these measures would indicate a failure of the entire business process.