Key Points Lead time is the duration between the start and end of a process. Cycle time is the duration for the entire ...

Therefore, for your company to provide on-time delivery, your system must be set up so that your cycle time is less than your takt time. Set Up Your System in an Ideal Way.

The flexibility of the billing cycle can go the other way, too. For example, suppose a large corporate customer needs to lengthen the cycle from 30 days to 45 days for software-as-a-service ( SaaS ).