Time Metrics

• The term "takt time" has its origins in German, where "Takt" means "beat" or "rhythm".

  • The term was first used in the manufacturing industry by German engineers in the early 20th century to describe the concept of producing goods at a steady pace to meet customer demand.

Takt time is calculated by dividing the available production time by the customer demand.

• For example, if there are 480 minutes of production time available in a day, and the customer demand is 240 units per day, then the takt time would be 2 minutes per unit (480 minutes / 240 units).

Cycle time refers to the time it takes to complete one cycle of a manufacturing process, from start to finish.

• • This includes all of the individual steps required to produce a product, such as machining, assembly, and testing.

Cycle time is an important metric because it helps to identify bottlenecks and inefficiencies in the manufacturing process, and can be used to target improvements that will reduce the time required to produce a product.

Lead time, on the other hand, refers to the time it takes to complete an order, from the time the order is received to the time it is delivered to the customer.

• Lead time includes not only the time required to produce the product, but also the time required for transportation, inspection, and other activities that are necessary to fulfill the order.

Lead time is an important metric because it helps to ensure that customer orders are delivered on time and in full, which is a key component of customer satisfaction.