Defining Lead Time, Cycle Time, and Throughput
Lead time is the total time it takes for a piece of work to be completed, from the point of initiation to the point of delivery. In Agile development, lead time is typically measured for user stories or features. So, this is the time from Backlog to all the way to "Done". Cycle time is the time it takes for a piece of work to be completed once it has started. In Agile development, cycle time is typically measured for individual tasks or technical work items e.g. time taken from "Dev in Progress" to "Acceptance test Start" Cycle time is a subset/part of the Lead Time. Cycle time is closely related to the work in progress (WIP) and excessive WIP can cause bottlenecks, delay, risk of money spent and re-work. Cycle time can be calculated by dividing WIP by throughput. Cycle Time = WIP/Throughput Throughput is the number of items that a team completes within a given period of time. It is a measure of how much work a team is able to accomplish. Both cycle ti...