Understanding lead time vs cycle time

Sara Verdi
Sara Verdi
Graphite software engineer

In project management and software development, understanding lead time and cycle time helps measure efficiency and improving processes. While both metrics assess time, they focus on different aspects of the software development and project delivery workflows. This guide will explore these concepts, their significance, and how you can use tools like Graphite Insights to analyze and optimize them.

  • Lead time refers to the total time taken from the initiation of a project until its completion. This includes every stage of the process, from initial request to delivery.
  • Cycle time on the other hand, specifically measures the time taken to complete one cycle of work, typically from when a task starts until it is finished. This metric is particularly relevant to teams that operate in iterative cycles, such as Agile teams.

Both lead time and cycle time are vital project management metrics that provide insights into process efficiency and operational effectiveness:

  • Time to market: In software development, reducing lead time and cycle time helps teams deliver products more quickly.
  • Operational efficiency: Monitoring these metrics allows organizations to identify bottlenecks and streamline workflows, ultimately improving throughput time (the total time taken for a unit of work to pass through a process).
  • Continuous improvement: Regular analysis of lead time and cycle time facilitates ongoing refinement of processes, contributing to better quality outcomes and higher customer satisfaction.

To illustrate the differences, consider a software development scenario:

  1. Lead time:

    • A team receives a feature request from a stakeholder. The total time from when the request is submitted to when the feature is live includes the waiting time for approval, development, testing, and deployment. For instance, if the feature request is made on January 1 and the feature is deployed on January 15, the lead time is 15 days.
  2. Cycle time:

    • If the development process for the feature starts on January 10 and ends on January 15, the cycle time is 5 days. This metric only considers the time when the work is actively being processed.

To effectively manage and optimize lead time and cycle time, conducting a thorough workflow analysis is necessary. This analysis helps in identifying bottlenecks—points in the process that slow down work. For example, if the testing phase of a software release consistently takes longer than expected, this might indicate a bottleneck. By addressing this, teams can improve their cycle time, ultimately leading to shorter lead times.

One effective technique for improving lead time and cycle time is value stream mapping (VSM). This method visually represents the flow of materials and information as a product makes its way through the value stream. By mapping out the entire process, teams can:

  • Identify areas of waste or delays.
  • Focus on optimizing steps that add value.
  • Implement strategies to reduce lead time and cycle time.

Implementing lead time reduction strategies can significantly enhance project delivery. Some strategies include:

  • Setting work-in-progress limits: This encourages teams to focus on completing existing tasks before taking on new ones, reducing delays caused by multitasking.
  • Improving communication: Streamlining communication among team members can minimize misunderstandings and expedite decision-making, thereby reducing waiting times.

Optimizing cycle time involves various tactics, including:

  • Automation: Automating repetitive tasks can speed up the overall process, allowing teams to focus on more complex activities.
  • Regular retrospectives: Conducting regular reviews of completed cycles helps teams identify inefficiencies and implement improvements quickly.

Graphite Insights helps teams track their engineering velocity through various process efficiency metrics, including lead time and cycle time. Here’s how Graphite Insights can support your analysis:

  • Customizable views: Teams can create, save, and share custom views to track metrics over specified time periods. For instance, analyzing the median time from publish to merge can highlight areas needing improvement.
  • Transparency: By providing transparent metrics, all team members can access relevant data, regardless of their role, leading to better-informed decision-making.
  • Historical data: With access to historical data, teams can analyze trends over time, facilitating informed discussions about continuous improvement.

For example, a team using Graphite Insights may track the average number of pull requests merged and the median review response time. By analyzing this data, they can identify patterns and adjust workflows to improve cycle time.

Understanding lead time and cycle time is important for optimizing project management and software development processes. By employing strategies for reduction and optimization, and utilizing tools like Graphite Insights for data-driven decisions, teams can reduce time to market and improve development operations.

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