What is Cycle Count?
Each month, we do an internal report called “Cycle Count,” to summarize all our “Production corrections” in one number. Cycle count is a direct measure of how well we perform at “doing it right the first time, every time.”
To calculate Cycle Count, you must divide the number of batches requiring corrections by the number of batches made, and subtract one from that number. If every batch requires an adjustment, the cycle count would be 1.0. If every batch required 2 adjustments, the cycle count would be 2, and so on. If we and our suppliers were perfect (Zero Defects), cycle count would be 0 (which never happens, because no one is perfect).
Our goal is to constantly strive to get that number lower. Check out some of our past cycle counts here.