Takt Time Vs Cycle Time

Takt Time vs. Cycle Time vs.
Lead Time – Manufacturing

KPIs Defined
The terms Cycle Time, Lead Time and Takt Time are often interchangeably used in
manufacturing.
However, there are clear differences in what each of these measure and how they are calculated.
Understanding how each of these is used can optimize the workflow, resources and work time on
the shop floor.
Cycle Time, Lead Time and Takt Time are all approaches to lean manufacturing, a way to
measure the efficiency and quality of products and reducing unnecessary disruptions and
processes.
What is Cycle Time?

Cycle Time Definition
Cycle Time is the amount of time a team spends actually working on producing an item, up until
the product is ready for shipment. It is the time it takes to complete one task. This includes time
spent producing the item and the wait stages (amount of time the task is left ‘waiting’ on the
board) between active work times.
Cycle time is what most people conventionally think of when they mistakenly use “lead time”
and “takt time” interchangeably.
Cycle Time is one of the key KPIs in manufacturing. ERP and MES systems use cycle time to
schedule, purchase and budget production.
How to Calculate Cycle Time
Cycle Time is also an important part of calculating the OEE (Overall Equipment Effectiveness).
Therefore, understanding Cycle Time is the first step to accurately measuring how well a
manufacturing operation is utilized.
You need two numbers to calculate Cycle Time. The total 𝑥 number of goods produced, and the
total time it took to produce the 𝑥 number of goods.
Cycle Time Formula
The formula for calculating the Cycle Time Formula is as follows
1
The key to keeping a good production system is to maintain the Takt Time just below Cycle
Time. If your Takt time is more than 15 minutes, you may have difficulties meeting the customer
demand. Reducing Cycle Time is one of many ways to keep the shop floor on a steady,
manageable schedule.
What is Lead Time?

Lead Time Definition
Lead time is the time measured from the moment a client puts in an order to when the final
product gets delivered.
This can be easily understood by thinking of the total time it takes for the client to receive the
product from the moment they put in the order to the moment they receive the shipment.
Lead Time is Cycle Time plus the additional amount of time it takes for production to begin and
the time it takes to deliver the finished product.
How to Calculate Lead Time
To calculate the Lead Time, you only need to know the time/date the order was received and the
time/date the client received the requested order. It is the time from order to dispatch.
Lead Time Formula
2
All the time spent in between these 30 days — order processing, manufacturing, labeling, and
shipping — is included when calculating the Lead Time. Therefore, both cycle time and other
processing times need to be cut down to shorten lead time.
What is Takt Time?

Takt Time Definition
Takt Time in German means rhythm. It is the steady ‘beat’ to which production must follow to
satisfy the demands of the customer.
Takt time is the rate at which manufacturing processes and systems need to complete the
production in order to meet the customer request. Therefore, this is less of measuring the total
time it takes to complete a segment or the entirety of the production.
Takt time measures the pace at which work must be done to deliver what has been promised.
How to Calculate Takt Time
Takt Time can be calculated with the amount of time available until product delivery and the
required number of production quotas the customer has requested.
3
4
Lead Time is measured from the customer’s perspective whereas Cycle Time is measured from
the internal process point of view.
Difference Between Cycle Time and Takt Time
Cycle Time is what the manufacturing ‘can do’, whereas Takt Time is what it ‘needs to do’.
These two numbers can be used to understand whether production can meet the demands of the
customer, given that additional processing times during Lead Time will remain constant for all
Cycle Time rates.
5
6

Takt Time Vs Cycle Time

Uploaded by

Copyright:

Available Formats

Takt Time Vs Cycle Time

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Takt Time Vs Cycle Time

Uploaded by

Copyright:

Available Formats

What is the difference between cycle time, lead time and takt time?

How are cycle time, lead time and takt time calculated?

Takt Time vs. Cycle Time vs.

Lead Time – Manufacturing

What is Cycle Time?

How to Calculate Cycle Time

Cycle Time Formula

The formula for calculating the Cycle Time Formula is as follows

What is Lead Time?

How to Calculate Lead Time

Lead Time Formula

What is Takt Time?

How to Calculate Takt Time

Difference Between Cycle Time and Takt Time

You might also like