Suppose a furniture manufacturing company is producing a certain line of chairs. Let's break down the time spent on each stage of the manufacturing process:
It takes 3 hours of Process Time to prepare and assemble the parts of the chair. 30 minutes is then spent on Inspection Time to ensure an acceptable level of quality. A total of 15 minutes is accumulated on Move Time, as the chair proceeds through the production line. And a total of 1 hour is spent in Queue Time, as the chair waits to be moved from one stage to the next.
Manufacturing Cycle Time = 3 hours (process time) + 0.5 hours (inspection time) + 0.25 hours (move time) + 1 hour (queue time) = 4.75 hours
So, for this example, the Manufacturing Cycle Time for producing one chair is 4.75 hours. This understanding can lead the company to identify areas of inefficiency and work to reduce the Cycle Time, aiming to improve productivity and reduce costs.