Takt Time Concept - Takt is a German word, It describes the conductors baton (for example in music orchestra). It is the concept that all activity within a business is synchronized by a rhythm, set by the customer demand.
To simplify this concept, auto-industry, where mass production is done in ‘pull’ manner, has generally described it as “Time Available to Complete Task (Task here means production of one unit e.g a car). An organization may decide and make suitable arrangements to produce a unit (product/service) in Takt-time or slightly less than Takt-time, repetitively in a cyclic manner, this speed at which production is done to ensure org meets the customer requirement is called Cycle Time. And total production time from start to end is called Lead Time.
To calculate the 'Takt time', following formula is used, Takt = 'Production Time Available' / 'Customer Demand'. 'Production time Available' is derived by deducting the Lunch and tea breaks, Team briefing times, TPM breaks, Clean down time, etc from 'total available time', as per industry practices. Hence 'Takt' is in fact the goal or target rate.
Takt & 'Resource planning' is closely related - As demand may fluctuate, a takt time can be then calculated for anticipated demand (or known demand) to plan resource levels. This applies across the board for any production operation, as well as Lean operations.
Why Takt is important & decisions it affects/drives-
Takt Time regulates following,
1. The pulse of the Production System, and so the resources required !
2. Rate of fulfillment of customer demand or Pace of sales !!
3. Links production activity to actual customer demand !!!
4. Ensures all production activity will be synchronized from 1st process to final assembly process, which is nothing but the balance flow.
Takt time concept helps to set the flow of production. Work balancing is done to match to takt (by applying lean tools & practices) and so the flow of production is in tune with customer needs. Hence Takt is enabler for work balance in the business. Successful Takt planning drives the business decisions which are strategic as well as tactical in nature. Takt drives organization to meet the strategic objectives of business, for example - Customer Satisfaction, Profits, Investment decisions, ROI, ROCE, Payback, Market Share and Growth. Also effective takt planning drives org to meet operational level objectives (Tactical), for example - Effective use of its people and plants, inventories, cashflow, productivity and various costs. Whole SCM related decisions are driven by takt planning decisions.
Calculations/Decisions on Takt eventually drives/affects the decision on Technology selection, Equipment selection decisions, Capital Investment, Operations cost, Offloading decisions / in-house production, Manpower & skills decisions, etc. Also, Identifying the areas of under-performance or waste in the system is the total focus of Lean and there Takt plays a vital role & becomes driver of improvement efforts.
- Written by Vivek Dahake, based on experience in Auto-mfg-industry.