To obtain the conversion cost per unit, this value added cost per minute is multiplied by the actual cycle time used to produce the units during the period. By comparing the unit cost computed using the actual cycle time with the unit cost possible using the theoretical or optimal cycle time, a manager can assess the potential for improvement .Note that the more time it takes a product to move through the cell, greater the unit product cost. With incentives to reduce product cost, this approach to product costing encourages operational managers and cell workers to find ways to decrease cycle time or increase velocity