Kanban guide · Flow and metrics
Cycle Time vs Lead Time: What Is the Difference?
Cycle time and lead time are often confused. Both measure how long work takes, but they start at different points, and they answer different questions.
Key takeaways
- Lead time runs from request to delivery; cycle time from start to finish.
- Lead time shows the customer's wait; cycle time shows process speed.
- Shorten lead time with smaller backlogs; shorten cycle time with lower WIP.
Definitions
| Lead time | Cycle time | |
|---|---|---|
| Starts | When the customer makes the request | When the team starts work |
| Ends | When the customer receives it | When the work is finished |
| Includes backlog waiting | Yes | No |
| Question it answers | How long will the customer wait? | How fast does our process run? |
Exact definitions vary between organisations. What matters is agreeing where each one starts and stops on your board.
An example
A customer requests a report on 1 March. It waits in the backlog until the team starts it on 10 March and finishes on 14 March. The lead time is about 13 days; the cycle time is about 4 days. The customer experiences 13 days, even though the team worked for only 4.
Why both matter
- Lead time reflects customer experience and the cost of a long backlog.
- Cycle time reflects how efficient and predictable your process is once work starts.
- A short cycle time with a long lead time means the backlog is too long or priorities are unclear.
How to improve each
| To reduce | Do this |
|---|---|
| Lead time | Keep the backlog short; make clear, quick decisions about what to start; say no or not yet sooner |
| Cycle time | Lower WIP limits, split work, remove waits and blockers |
Frequently asked questions
Cycle time vs lead time: is lead time always longer?
Yes, when lead time includes the time before work starts, because cycle time is part of lead time.
Should I report cycle time and lead time to customers?
Report lead time to customers, because it reflects their experience, and use cycle time internally to improve your process.
What is the difference between cycle time and lead time?
Lead time runs from when a customer requests an item to when it is delivered. Cycle time runs from when work starts on it to when it is finished, so it is part of lead time.
Lead time vs cycle time: what is lead time in Kanban?
Lead time is the total time from a request to its delivery, including time waiting in the backlog. It is the delay the customer experiences.
How do you calculate lead time and cycle time?
Lead time = delivery date − request date for each item, and cycle time = finish date − start date. Record these dates on the card or in your tool.
Cycle time vs lead time: why does lead time matter more to customers?
Customers wait from the moment they ask, not from the moment the team starts. A short cycle time can hide a long lead time if items sit in the backlog.
How do you reduce lead time and cycle time?
Keep the backlog short and replenish frequently to cut waiting before work starts, and reduce WIP to shorten cycle time, which is part of lead time. Saying no to low-value requests early also helps.
How do lead time and cycle time relate to throughput?
Lead time and cycle time measure how long each item takes; throughput counts how many items are finished per period.
Does a "lead" in project scheduling relate to lead time and cycle time?
No. In scheduling, a "lead" is something different: an overlap that lets a successor start before its predecessor finishes. See leads and lags.
Does Little's Law apply to lead time and cycle time?
Yes, if you measure WIP over the same boundaries. Average lead time equals the average number of items in the whole system divided by average throughput; for cycle time, count only the items between the start and finish points.
Should teams track both cycle time and lead time?
Yes. Cycle time shows how efficiently the team works once started, while lead time shows the customer's experience, including queueing before work begins.