Takt Time, Cycle Time, Lead Time

Learn how to calculate Takt Time, Cycle Time, and Lead Time.

Watch this video to understand differences between Takt Time, Cycle Time, and Lead Time. After theoretical introduction there are two examples which clearly show how to calculate each of them, and what are they used for.

The Encyclopedia of Operations Management defines them as:

Takt time
The customer demand rate expressed as a time and used to pace production.

Cycle time
The time between completions (or starts) of a unit of work.

Lead time
The planned replenishment time for an order; often written as two words (lead time); also called production lead time, manufacturing lead time, and planned lead time.

Want to know more?

Lean Enterprise Institute provide definitions and examples in their Lean Lexicon:

• Takt Time
• Cycle Time

References

Hill, A. V., 2012. The Encyclopedia of Operations Management : A field manual and glossary of Operations Management terms and concepts. Upper Saddle River, N.J: FT Press.

Marchwinski, C. and Shook, J., 2003. Lean Lexicon : A graphical glossary for Lean thinkers. Brookline, Mass: Lean Enterprise Institute.