In the world of project management, two key metrics help us measure efficiency: cycle time and lead time. They sound similar but serve different purposes.

Cycle time is your actual working time. It’s when your team is actively developing, testing, or deploying. Imagine you’re baking a cake – cycle time is just the mixing, baking, and decorating. In software development, it’s the hours your team spends writing code, testing features, and preparing for release.

Lead time tells a broader story. It’s the entire journey from customer request to delivery. Going back to our cake example – lead time includes everything from when someone orders the cake until they receive it. This includes waiting time, planning, and the actual baking process.

Here’s a real-world example: A customer requests a new feature on Monday. The team starts working on Thursday and finishes Friday. The cycle time is one day – that’s the actual work time. But the lead time is five days – counting from request to delivery.

These metrics serve different purposes. Cycle time shows how efficiently your team works, while lead time reveals your overall process efficiency, including delays and waiting periods. Reducing either time improves customer satisfaction, but they require different strategies.

To improve cycle time, focus on streamlining your actual work processes. For lead time improvements, look at reducing delays between stages. Both metrics are essential for continuous improvement, whether you’re using Lean, Agile, or Six Sigma methodologies. The key is measuring both consistently. Track when work starts, when it’s actively being worked on, and when it’s delivered. This data helps identify bottlenecks and opportunities for process improvement.

Remember: Shorter cycle times mean faster delivery. Shorter lead times mean happier customers. Track both to optimize your entire process.