Lead Time vs Cycle Time
Lead time and cycle time both measure the length of processes from start to end. Both are broad terms that are applied to a variety of processes in different industries.Lead time is the total time it takes to fulfill an obligation to the customer such as responding to an inquiry, fixing an issue or delivering an order.Cycle time is the total time it takes an internal process to run. Lead time may include the cycle time of multiple internal processes and delay time between processes.Example
A train manufacturer offers custom manufactured replacement parts to customers. When an order is placed it is goes through several internal business processes each with its own cycle time including order processing, manufacturing and delivery. The lead time is the sum of these cycle times plus a delay of two days due to a manufacturing backlog.
| Lead Time vs Cycle Time | ||
Lead Time | Cycle Time | |
Definition | The start-to-end time of a process from the customer perspective. | The start-to-end time of an internal process. |
