# Lean cycle time vs lead time

I am working on implementing OEE in one of our machines that makes centertubes for automotive oil filters. The steel is rolled and each part number has specific diameter and length. However, the run-rates vary for each part numbers. I am somewhat able to calculate Takt time for each part number based on the standard run-rate. However, the problem for me is to determine Ideal Cycle Time. The machine can run as fast as 65 PPM for one part number while it runs as slow as 13 PPM for some other part number. In this case, what would be the optimal way to calculate Ideal Cycle Time for each part numbers? As you know, Ideal Cycle time is required to calculate Performance Metric of OEE.

To lessen the gap between requested and actual delivery, you need to be able to evaluate actual Expected Customer Lead Time to check whether it ties to your real requirements and also map out your actual operations process, and try to improve your materials management competencies to meet customer expectation. Also, regulating the operative processes and documentation will aid in reducing misunderstanding among personnel, benefit easy learning and expand reliability in production. Expected Customer Lead Time reduction is a great way to improve productivity and increase sales.

Mike,
Your calculation for takt are absolutely right taking an average demand is the wrong part. We take maybe a six month look ahead in orders that is the customer demand. Takt may change up to 8 times a year on some value streams.
In aerospace we had 9 different aircraft types one would be on a move rate of three a week some one a month each had an individual takt time based on the demand for that  product.
The cycle time of each key stage or process was then evaluated if it was greater than takt you had to in goldratt terms exploit the constraint. You would create a yamazumi or line balance chart to identify the constrained stages from seeing this you can do many things .
Identify Value and Non Value add. eliminate the waste to get below takt. Introduce shifts on some stages or create identical stages called rate tooling. So you never under or overproduce as you are asking because the speed of your line increases and decreases with customer demand by flexing tooling positions and manpower.
Usually you had the luxury of one value stream getting faster as another slows down moving your manpower onto different contracts.
Hope you get this
All The Best
John M