Explain the difference between takt time and cycle time and

Explain the difference between takt time and cycle time, and how do they apply to establishing process standards?

Solution

The difference between takt time and cycle time is that takt time is based on demand rate. It is calculated as available time divided by the demand rate. Takt time is a measure of target cycle time necessary to satisfy the demand rate. Cycle time, on the other hand, is based on actual process capacity, rather than demand. It is measured as reciprocal of throughput.

Takt time is applicabe in establishing process standards by determining the number of workstations required to meet the demand rate. Cycle time determines the throughput and hence the production rate.