We use these a lot but sometimes we can get ourselves muddled up. Bookmark this page and you’ll never have this problem again…..

Lead time, takt time, and cycle time are all important concepts in manufacturing and production processes, but they each refer to different aspects of the production process. Here’s a brief explanation of each term:

Lead time: Lead time is the amount of time it takes from when a customer places an order for a product until the product is delivered to the customer. It includes all the time required to complete the various steps in the production process, from ordering raw materials to assembling the final product and shipping it out. Lead time is important for businesses to manage because it affects customer satisfaction, inventory levels, and cash flow.

Takt time: Takt time is the rate at which a product must be produced in order to meet customer demand. It is calculated by dividing the available production time by the customer demand during that time period. Takt time is important because it helps businesses to optimize their production processes by setting a target rate of production that meets customer demand without overproducing or underproducing.

Cycle time: Cycle time is the time it takes to complete one production cycle, from the beginning of the process to the end. It is the time it takes to complete one unit of production. Cycle time is important because it helps businesses to identify bottlenecks and inefficiencies in the production process and to improve overall efficiency by reducing cycle time.

Some trivia on Takt

Takt time is a concept that originated in the manufacturing industry and was first used in German factories during the early 20th century. The word “takt” comes from the German word for “beat” or “pulse” and refers to the rhythm of production required to meet customer demand.

The concept of takt time was originally used in the production of music boxes, where it was necessary to synchronize the production of various components in order to produce a complete product with a consistent rhythm. Over time, takt time was applied to other industries, including automotive manufacturing, where it became a key concept in lean production and just-in-time (JIT) manufacturing.

Today, takt time is used in many industries as a key performance indicator (KPI) to measure production efficiency and to help optimize production processes to meet customer demand in a timely and cost-effective manner.

In summary, lead time is the total time from order to delivery, takt time is the rate at which a product needs to be produced to meet customer demand, and cycle time is the time it takes to produce one unit of a product.