Takt Time Calculator

Takt Time

The takt time determines the efficiency of the company in meeting its demand. It is the rate at which a company should produce to satisfy the total demand. In other words, it’s the sell rate or the rate/time at which frequency you get fresh orders. So the company should be able to produce and meet the demand within this time frame. The management should plan in such a way that the production time should be less than the takt time. Takt time calculator is an online tool to make such calculations easy.

The term takt is derived from the German term Taktzeit, which means measure or pulse or cycle varying on the basis of context in which it is used. It helps the company in defining the time in which one unit should be produced. Moreover, it helps in avoiding the chances of overproduction as well as carrying on unnecessary inventory. It is generally used in lean production management.

Takt time method is beneficial for a company as it helps in increasing efficiency by decreasing the chances of overproduction. Also, it gives management a clear insight into the time available to meet the demand.

Formula

We can calculate takt time by dividing available time for production from number of units demanded or required by customers. A mathematical representation of the same is as follows:

Takt Time = Available Time for Production / Number of Units Demanded

About the Calculator / Features

The takt time calculator is quick and easy to use. The user have to simply provide the following details for quick result.

  • Available time for production
  • Number of units demanded
Takt Time Calculator

Calculator

How to Calculate using Calculator

The user have to insert the following details in the calculator and it will provide the result in one go.

Available Time for Production

It means the time available to produce the required quantity. Generally, it is said that the workers work in shift of 7-8 hours but this does not hold true as it includes the breaks a worker takes meanwhile. For example, tea or lunch breaks. And the remaining time is also not 100% available for the production activity. It includes the time taken by workers to settle themselves and to setup machines.

Say, for example, a factory operates for 7 hours a day for 4 days in a week. And the workers take a break of half hour daily. Hence, the time available for production is 26 hours in a week .

Number of Units Demanded

It is the total number of units customer demands.

Example of Takt Time

Let us try to understand this with the help of an example. Suppose, the total demand of a particular article in a month is 100 units and time available to produce these units is equal to 450 hours.

Takt time = 450 / 100 = 4.5 hours per unit

Interpretation

Takt time should always be more than cycle time so that the company would be able to meet the demand. Assume that the cycle time in above example is 4 hours. Hence, the company has enough time to complete the production in order to meet the demand.

Share Knowledge if you liked
Sanjay Borad

Sanjay Bulaki Borad

Sanjay Borad is the founder & CEO of eFinanceManagement. He is passionate about keeping and making things simple and easy. Running this blog since 2009 and trying to explain "Financial Management Concepts in Layman's Terms".

Related Posts

Leave a Comment