There are many types of cycle times when it comes to businesses, especially when it comes to analyzing manufacturing and supply chain processes. In general, all of these various cycle times are simply the time between two events. For example, order cycle time, or OCT, is the time between orders being placed. In other words, OCT compares the time of the first order with the time of the second order and calculates the duration between the two events.
This recipe demonstrates how to calculate OCT as well as a closely associated metric, order lead time (OLT).