Glossary
Cumulative Source/Make Cycle Time
Tags: Glossary
The cumulative internal and external lead time to manufacture a shippable product, assuming that there is no inventory on hand, no materials or parts on order, and no prior forecasts existing with suppliers, is an element of Total Supply Chain Response Time. The calculation involves the critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order), or Manufacture Cycle Time (Make-to-Stock), and Complete Manufacture to Ship Time. It is important to note that this determination is made separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.
What is Cumulative Source/Make Cycle Time?
Cumulative Source/Make Cycle Time
In the world of logistics, the concept of Cumulative Source/Make Cycle Time plays a crucial role in understanding the total time it takes to manufacture and ship a product. This term refers to the combined internal and external lead time required to produce a product that is ready for shipment. It is important to note that this calculation assumes there is no existing inventory, materials or parts on order, and no prior forecasts with suppliers.
To calculate the Cumulative Source/Make Cycle Time, several key elements need to be considered. These elements include the Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time, and Complete Manufacture to Ship Time. It is essential to understand that this calculation is made separately for different types of products, such as Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock.
The Total Sourcing Lead Time refers to the time it takes to source all the necessary materials and components required for manufacturing. This includes identifying suppliers, placing orders, and waiting for the delivery of these items. The Manufacturing Order Release to Start Manufacturing is the time it takes from the release of the manufacturing order to the actual start of the production process.
The Total Manufacture Cycle Time varies depending on the type of product being manufactured. For Make-to-Order, Engineer-to-Order, and Configure/Package-to-Order products, this cycle time includes the time required for engineering, customization, and packaging. On the other hand, for Make-to-Stock products, this cycle time refers to the time it takes to produce the product based on anticipated demand.
Finally, the Complete Manufacture to Ship Time is the time it takes to finish the manufacturing process and prepare the product for shipment. This includes quality control checks, packaging, and any other necessary steps before the product is ready to be sent to the customer.
By considering all these elements and calculating the Cumulative Source/Make Cycle Time, businesses can gain valuable insights into the total time it takes to fulfill customer orders. This information is crucial for effective supply chain management and meeting customer expectations.
In conclusion, Cumulative Source/Make Cycle Time is a vital concept in logistics that helps businesses understand the total time required to manufacture and ship a product. By considering various elements such as sourcing lead time, manufacturing cycle time, and shipment preparation time, businesses can optimize their supply chain processes and ensure timely delivery to customers.