In a highly-competitive market, you have to strike while the iron is hot and deliver products when the demand arises. When your organization receives an order, how do you work out the amount of time you need in order to meet demand? The answer lies in calculating what is known as Takt Time.
What is Takt Time?
Essentially, Takt Time is the rate of production that will ensure you fulfill a customer’s order. In German, the word “takt” means tempo, rhythm or pulse. It is a very important concept in Lean manufacturing because it ensures that your organization optimizes its production line to run efficiently.
This allows you to produce the right amount of goods to satisfy the order with the available time that you have. That way, the customer is satisfied while also making sure that you’re avoiding inventory waste, among other things.
Calculating Takt Time
How do you calculate Takt Time? Take a look at the below formula (keep in mind that takt time is calculated in minutes):
Takt Time = Time Available for Production / Units Demanded by the Customer
Since we have already defined what Takt Time is, let us define the other two terms of the formula:
- Time Available for Production: This is the amount of time that an organization has in a day/shift for work.
- Units Demanded by the Customer: This the number of units that the customer has specified in their order that need to be produced per day/shift.
Example of Takt Time
Let’s look at an example from the electronic industry: A cell phone manufacturing company needs lithium-ion batteries, which is something that your organization produces. You have 8 hours during the day dedicated to work, with one of those hours being a lunch break for your workers. This means you essentially have 7 hours, which is 420 minutes.
Now, suppose the cellphone manufacturer has ordered 50 li-ion batteries to produced in a day, you can calculate takt time as follows:
Takt Time = 420 / 50 = 8.4 minutes per li-ion battery.