According to a recent study, manufacturers observed a 25% reduction in production time after understanding and efficiently implementing tools to correctly setup takt times in their manufacturing process.
Manufacturers need to maintain efficiency in operations for a competitive edge and meeting their customer’s demand. One essential metric that manufacturers use to optimize their workflow and maintain operational efficiency is Takt Time. It serves as a guideline for production planning and aligning your output with demand to avoid excess inventory and inefficiency.
Understanding how to measure and apply takt time can dramatically impact the balance between production rate and customer demand.
In this article, we’ll explore basics like what is takt time, how to calculate it, it’s importance, and many other aspects of takt time that in the longer term will be beneficial for your business in terms of improving efficiency and profitability.
What Is Takt Time?
Meaning a beat or pulse, the term first originated from the German word “Takt,” The concept of Takt Time was first introduced in German manufacturing in the 1930s. It later gained widespread acceptance and use in Toyota’s production system after its practice propelled the company into global success by synchronizing production rates with market demand.
Takt time refers to the pace at which a product or process needs to be completed to meet customer demand. In simpler words, it is the maximum amount of time available to produce one unit in order to satisfy customer orders within a specific period.
This concept is critical in Lean manufacturing because it helps visualize and balance the production process with actual customer needs.
According to a McKinsey case study, optimizing takt time can result in almost 20% increase in line productivity.
Takt Time Formula
Simple and straightforward, the formula of takt time helps determine the maximum time allowed per unit to meet demand without over or under producing finished goods.
Takt Time = Total Available Production Time / Average Customer Demand
- Available Production Time in the formula represents the total working time available in a given period. It’s usually measured in minutes or hours, minus planned downtime for breaks, maintenance, or shift changes.
- Customer Demand refers to the number of units or services needed to meet customer orders within the same period.
How to Calculate Takt Time
Follow the steps below to calculate takt time.
1. Determine Available Production Time
Start with actual production time calculation. It’s the time your team will need to produce value. For example, if a factory operates 8 hours everyday and has two 15-minute breaks and a 30-minute lunch. The available production time in this case will be 7 hours or 420 minutes.
2. Estimate Customer Demand
Now, establish the number of units that need to be produced in order to meet customer demand. For instance, if the customer requires 20 units per day, that’s exactly your customer demand figure.
3. Apply the Formula
Now, put these numbers in the formula to calculate takt time.
Takt Time = 420 /20 = 21 minutes / unit
As per calculation, the takt time for completing one unit in the manufacturing facility is 21 minutes. If the workflow occurs at this pace, the manufacturer will successfully the customer demons in the specific period without overproduction.
How Is Takt Time Different from Other Metrics?
Unlike other metrics in lean manufacturing like cycle time and lead time, takt time focuses specifically on aligning production with demand.
Here’s how takt time differs from other metrics, which are often confused with each other.
Cycle Time means the time it takes to complete one unit or task from start to finish. It also includes a waiting period. Unlike cycle time, which measures the actual time spent on production, takt time determines the rate at which production should occur to match and fulfill the customer’s demand.
If cycle time is greater than takt time, it indicates inefficiencies or bottlenecks.
Lead Time refers to the total time it takes for a customer’s order to be fulfilled. It starts from the moment an order is placed to the end point when it’s delivered. Lead time looks at the entire process from the customer’ perspective, including waiting and transit times.
Importance of Takt Time in Lean Manufacturing
Takt time is a crucial tool for businesses aiming to optimize their production process. Let’s walk through the facts that speak volumes about takt time and its implementation in lean manufacturing.
1. Aligning Production with Customer Demand
Takt time ensures that the production process meets customer demand without producing excess inventory or falling behind orders. It helps you calculate the exact time required to complete customer demand, which ultimately results in increased efficiency.
2. Improving Production Flow
By setting a pace for production, takt time ensures a smoother and more predictable workflow. It improves the overall efficiency of the manufacturing process by reducing bottlenecks.
3. Reducing Waste
Overproduction is identified as one of the seven potentia lean wastes. By calculating takt time, you can visualize the exact amount of products required in a set time period. This prevents overproduction and ultimately contributes to waste reduction.
One of the key goals of Lean manufacturing is to minimize waste. Takt time helps by preventing overproduction, a major source of waste in production processes.
4. Supporting Capacity Planning
With a clear understanding of how long it takes to produce one unit, takt time facilitates in planning production capacity. This ensures the right amount of resources, labor, and equipment are allocated to meet the demand without overburdening the system. Manufacturers can also increase or decrease capacity according to the circumstances by calculating takt time.
5. Enhancing Process Control
Measuring takt time allows companies to monitor performance and make adjustments as needed. Takt time makes it easier for manufacturers to spot inefficiencies, areas for improvement, or potential production bottlenecks.
Benefits of Takt Time for Manufacturers
Below is the list of the benefits that you can enjoy after implementing takt time.
- Companies can streamline their operations by aliginging production with customer demand. This results in improved productivity and enhanced efficiency.
- Takt time allows you to visualize enhanced predictability, a consistent production rate makes it easier to plan for future demands and anticipate potential challenges in workflow.
- Manufacturers can enjoy better resource utilization. Takt time helps in determining the exact number of resources, whether manpower, machinery, or raw materials, required to meet demand. This results in unnecessary usage of resources and reduces operational costs.
- What else will a business require than improved customer satisfaction? Companies that consistently meet customer demand without delays or excess production build trust with their customers, enhancing customer satisfaction.
Visible Results — Before & After Implementing Takt Time
The Implementation of takt time has helped balance the workload across stations, leading to a 15% increase in productivity and a 20% reduction in lead times, as per studies.
Picture a company that produces kitchen appliances. It has no clear production pace initially. After better understanding and optimizing takt time, the business witnessed visible improvements.
| Before Implementing Takt Time | After Implementing Takt Time |
| Frequent bottlenecks in assembly | Reduced inventory levels |
| Excess inventory buildup | Consistent production flow |
| Uneven work productivity | Increased employee efficiency |
| Unpredictable delivery times | Improved on-time deliveries |
Takt Time: A Metric That Supports Continuous Improvement
Lean manufacturing looks forward to continuous improvement. It is crucial for optimizing processes and reducing waste. With takt time, teams get a clear, measurable target to work on.
As the production team meet their takt time goals, it becomes easier to identify areas where improvements should be made. For instance, reducing downtime, speeding up cycle times, or addressing bottlenecks.
Continuous improvement is inevitable for businesses who have their aim set for improved production efficiency, a competitive edge, reduced costs, and delivering high-quality products to customers.
Limitations of Takt Time
While takt time is a powerful measurement kpi , it’s essential to be aware of its limitations:
- Takt time assumes that customer demand is relatively stable, which might not always be the case. Sudden spikes or drops in demands can sometimes make it challenging to stick to a fixed takt time.
- Takt times work best when production processes are consistent. However, unexpected machine breakdowns, employee absences, or supply chain disruptions can throw off the rhythm, making it difficult to maintain the desired production rate.
- Takt time can be affected by external factors like shortage of raw material or equipment failure. Such discrepancies can result in either overproduction or underproduction.
Conclusion
This article includes concepts like what is takt time and its role in optimizing lean manufacturing processes. Takt time is a vital metric that ensures production rate aligns with customer demand besides minimizing waste and optimizing efficiency.
By calculating takt time, manufacturers can better plan their production schedules, allocate resources, and make data-driven decisions to improve workflow.
