Takt Time Calculation, Cycle Time and Bottleneck


Takt Time calculation with the formula related to the cycle time and the bottleneck is described.
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This video was made in collaboration with Fabrizio Cireddu, the founder of the LinkedIn group: Lean Manufacturing & Kaizen.
https://www.linkedin.com/groups/1256067/

Here the transcript of the video:

Hi!

In this video you will learn :

What is Takt Time?
Why is it important?
How to Calculate Takt Time?
What is the difference between Cycle Time, Bottleneck, and Takt time?

TAKT Time is the right time to meet customer demand avoiding stock, wastes, or missing deliveries.

In other words, TAKT Time is the speed with which the product needs to be created to satisfy customer demand.

# TAKT Time Formula

Takt Time = (Net Time Available for Production)/(Customer’s Demand at that time).

Example: if we have a demand like in this graph, Takt time in January is = 20 working days * 7,5 hours/day / 1000 units = 0.15 hour/unit ≈ 9 minutes/unit.

Takt time has to be always higher than the production time of each station.

Cycle time is the time it takes to complete the production of one unit from start to finish.

If we produce a product in different steps, Cycle Time is the sum of all time spent at each station. In this example it equal to 87 minutes.

A Bottleneck (or constraint) in a supply chain is the resource that requires the longest time in operations of the supply chain for a certain demand.

A bottleneck paces the speed of the production and it can impact or not customer demand.

Case 1

In the graph, you can see that the station 4 is the bottleneck of our process with 22 minutes. 22 Minutes are higher then Takt time and this one will have an impact on Customer’s delivery.

Case 2

On the other hand, you see that the station 4 is lower then takt time, so it will not impact on Customer’s Delivery but will give the pace to the production.




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