Understanding TAKT Time and Cycle Time vs. Lead Time

In manufacturing and production, TAKT time, cycle time, and lead time are important metrics that help companies optimize their operations. TAKT time is the rate at which products must be produced to meet customer demand.

Cycle time is the amount of time it takes to complete one cycle of a production process. Lead time is the amount of time it takes to receive raw materials and supplies and to complete a product.

By understanding and managing these metrics, companies can improve efficiency, reduce costs, and increase customer satisfaction.

What is TAKT Time

When it comes to manufacturing and production, there are a few key metrics that can make or break a company’s success.

One of these metrics is “TAKT time”, which is basically the heartbeat of your production line. It’s the rate at which you need to produce your products in order to keep up with customer demand.

It’s called “TAKT” time because the word “takt” is German for “pulse”. Just like your own heart rate can speed up or slow down depending on different factors, your company’s TAKT time can also vary depending on customer demand.

Managers use TAKT time to make sure they’re producing the right amount of products at the right time. By measuring TAKT time, they can eliminate overproduction or underproduction, which can lead to wasted resources and unhappy customers.

By optimizing their production systems to match TAKT time with customer demand, managers can increase their overall quality control standards and make sure they’re always meeting customer needs.

Cycle Time

Cycle time is a measure of efficiency in manufacturing, it’s the amount of time it takes to complete one task or operation. It includes both the time spent actively working on a product and any wait times, such as when a product is left on a board between active work sessions.

It’s often confused with “lead time” and “takt time” but it’s important to understand that they are different metrics.

Cycle time is important to measure because it can help identify bottlenecks in production and areas where improvements can be made. It can be calculated by taking the total number of products produced and the total time it took to produce them.

Lead Time

Lead time is a term that is used to describe the amount of time it takes for a process to be completed, from start to finish. Depending on the industry, the meaning of lead time can vary.

In manufacturing, lead time is often broken down into three parts: pre-processing time, processing time, and post-processing time.

Pre-processing time is the time it takes to create plans and manage paperwork, processing time is the time it takes to actually build the product, and post-processing time is the time it takes to deliver the product to the customer.

In supply chain management, lead time refers to the amount of time it takes for an order to be placed and received from the supplier.

In project management, lead time is used to describe the duration of a particular set of activities, including any dependencies and overlaps between tasks.

Lead Time vs Cycle Time

1. By Definition

Lead time is the amount of time it takes from the moment an order is placed to the moment the product is delivered to the customer.

It takes into account the time it takes to receive raw materials and supplies, as well as the time it takes to complete the product.

Cycle time, on the other hand, is the amount of time it takes to complete one cycle of the production process. It includes the time it takes to manufacture a unit, including any wait times or downtime between active work sessions.

It’s a measure of efficiency and helps identify bottlenecks in production and areas where improvements can be made.

2. By Visibility

Lead time is a metric that is visible to customers as it affects processes outside of manufacturing, such as delivery times. It’s the time it takes from placing an order to receiving the final product. It’s an important metric as it directly impacts customer satisfaction.

Cycle time, is mainly used for internal business management purposes. It’s the time it takes to complete one cycle of the production process. It includes the time spent on manufacturing a unit and any wait times or downtime between active work sessions. It’s used to measure efficiency and identify bottlenecks in production, so it’s mainly used for internal purposes.

3. By Goal

Lead time is a metric that provides a general overview of the manufacturing and sales operations. It’s used to calculate the arrival rate and it’s the amount of time it takes from placing an order to receiving the final product.

It’s an important metric as it impacts the overall efficiency of the operations and customer satisfaction.

Cycle time, is used to measure the rate of output. It provides an understanding of how fast the production process is moving and it serves as a gauge for completion rates.

It includes the time spent on manufacturing a unit and any wait times or downtime between active work sessions. It’s a useful metric for identifying bottlenecks in production and areas for improvement.

4. By Analysis

Lead Time is to investigate the causes of the customer’s solution delay. Cycle Time is to investigate the solution’s need.

TAKT Time vs Cycle Time

By Function

Takt time is the average time that passes between the beginnings of two successive product units being manufactured.
Inventory cycle time is a term used internally to describe how long it takes to turn raw materials into finished goods.

By Meaning

Takt time = Available Production Time / Number of Ordered Units (Customer demand)
Cycle Time = Net Production Time / Number of Produced Units.

TAKT Time vs Lead Time