How to Best Understand Cycle Time Versus Takt Time Versus Lead Time

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Executive Summary

Cycle time calculation has a definition along with production cycle time and the manufacturing cycle time.
There is also something called the cycle rate, which is critical for production planning.
We cover how to perform cycle time analysis and calculate cycle time with a cycle time calculator and cycle time formula.

Introduction to Cycle and Takt Time

Cycle time and takt time are two of the most commonly used time measurement in production planning and detailed scheduling. Another term that is frequently used in supply chain management is lead time. You will learn how do these various timing measurements relate to each are how they are each used.

What is Takt Time?

Takt time is a measurement of production throughput. Takt time is the pace of manufacturing output. But rather than being a description of the current output, the takt time is the production rate required to fill the demand. The takt time is a bit of a tricky concept because of some of the following reasons.

Unless the manufacturing facility is using all of its capacity, the takt time may change.
Takt also tends to assume a static level of demand (at least for a period).
Takt time calculation is meaningless if it does not include scheduled and unscheduled downtimes.
Takt time loses applicability when an order is not being produced for a customer waiting to receive the product as soon as the manufacturing process is complete.
Takt time applies when a particular order can be tracked through the manufacturing process. When a production order is filled with many customers’ orders, it makes less sense to even use takt time in any shape or form.

Takt time is the pace of manufacturing output. But rather than being a description of the current output, the takt time is the production rate required to fill the demand. The takt time is a bit of a tricky concept because unless the manufacturing facility uses all of its capacity, the takt time may change. It also tends to assume a static level of demand (at least for a period).

Takt Time and Decoupling Inventory or Decoupling Stock

A significant problem with takt time is decoupling inventory or decoupling stock between the finished goods at the end of the manufacturing line and the final customer. There is decoupling inventory or decoupling stock that is in transit. This is called decoupling inventory or decoupling stock, as it decouples the final finished goods inventory from the final consumption.

Cycle Time, Takt Time and The Relationship to Lead Time

The presentation of takt time as when the customer receives the product makes little sense. In most manufacturing situations, the customer must be shipped the product, and the product most often sits in inventory before the customer receives it. There are many buffers (stocking locations, shipping buffers, etc..) between the manufacturing process and the customer.

A Takt Time Calculator and Takt Time Calculation

Creating a takt time calculation or takt time calculator is complicated in most scenarios where the customer is not at the location. This is why takt time calculation is straightforward in scenarios such as food preparation or automotive and equipment repair, etc.. The following video demonstrates this.

What is Cycle Time and Cycle Time Calculation?

Cycle time is the time it takes to complete a process, usually a production process. What is cycle time is often not clear? This is because of the confusion of cycle time with lead time.
What is cycle time that can be expressed as the time that production work is being performed? The answer to what is cycle time is not the overall time that producing a production order takes.

A Cycle Time Definition Along with Production Cycle Time or Manufacturing Cycle Time

The cycle time definition is the time required from the beginning of production operation to the end. The cycle time definition is most importantly differentiated from the description of lead time.

Production cycle time or manufacturing cycle time can describe the overall production time, which is how long it takes the input components to be converted into the finished good for a production run or for an order to be processed. On the other hand, the production cycle time can also refer to one operation on the production line. So if one operation on the production line is packaging, the packaging cycle time is one of the cycle times that make up the overall production cycle time or manufacturing cycle time on the line.

When Discussing Cycle Time

When people in manufacturing talk about cycle time, they normally discuss the specific operations within the overall manufacturing process. When people in supply chain management talk about the overall production cycle time or manufacturing cycle time, they know far less than manufacturing. Cycle time could be used to describe other non-production processes in the supply chain, but in practice, it is not. As soon as the discussion turns away from the factory, the term lead times are closely used to describe these timings. Although strangely, times like the goods issue time or goods release time are lead times, they are not specified using the term lead time.

What is Cycle Rate?

The cycle rate is the unit measurement rather than the time measurement of the manufacturing process that is being discussed. A cycle rate is merely the cycle time converted to units. So if cycle time is one hour and 120 are produced, then the cycle rate is 120/hr or 2 per minute. A cycle rate is given in the number of units per whatever time increment is used.

The Logic and Feasibility of Cycle Time Reduction

Manufacturing often is focused on cycle time reduction. The feasibility of cycle time reduction usually is relatively low compared to common targets. But, the possibility of cycle time reduction can be high as long as significant investments are made into machinery, training, stock availability, etc..

Unfortunately, companies often think that the feasibility of cycle time reduction is good when investments in these foundational items are low.

Cycle Time Example?

A cycle time example could be as simple as 20 hours for 50,000 units to be processed by the manufacturing line.
Another cycle time example could be that process A takes 2 hours to process 50,000 units. The next process (b) takes 4 hours to process 50,000 units, etc..
A cycle time example can be used to explain cycle times for education on cycle times.

Performing Cycle Time Analysis

Performing cycle time analysis means measuring the individual processes that make up the overall manufacturing process to measure the cycle time and then performing cycle time analysis to determine how the cycle time can be reduced (in most cases).

Cycle time analysis is an essential way of taking advantage of cycle time to improve the production process. This means it is necessary to estimate and calculate the cycle time.

How to Calculate Cycle Time, Calculating Cycle Time with a Cycle Time Calculator and a Cycle Time Formula

How to calculate cycle time is a common question that is asked by those new concepts. Calculating cycle time typically means measuring different orders as produced and then taking an average of this value. To calculate cycle time, one must invest the time to obtain these observations.

A cycle time formula is simple enough to develop as it merely requires a numerator of units and then a denominator of time. This issue with calculating cycle time is not building a cycle time calculator or using a cycle time formula, but obtaining the observations to perform the cycle time calculation or cycle time calculation.

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Conclusion

Cycle time and takt time have somewhat limited applicability. The most crucial factor for overall supply chain planning is the lead time. Cycle time and takt time are more granular time measurements that are applied to production planning and scheduling. To calculate cycle time, one needs to record real production runs being performed as the factory.

Timings are some of the most complicated areas related to the supply chain. We get into timings in multiple dimensions in our book on replenishment triggers. Questions often arise related to what triggers replenishment. It defines whether the environment is made to stock, makes to order, assembles to order, etc.