Cycle Time vs.

Lead Time
 Cycle time is the time starting when operation
begins to the point of time when the operation
ends.
 Lead time starts when a request is initiated and
ends with delivery.
 Let’s say a customer orders a product on November
6. The company receives the order instantly and
delivers the product on November 10, yet work on
the product begins November 8.
 Therefore, the Lead Time here is 4 days, while Cycle
Time is 2 days. Lead time represents the time
expended—but not the effort.
 TAKT Time
TAKT time is the maximum acceptable time to
meet the demands of the customer. In other
words, TAKT Time is the speed with which the
product needs to be created in order to satisfy
the needs of the customer.
The TAKT Time Formula = (Net Time Available
for Production)/(Customer’s Daily Demand).
Total Cycle Time/TAKT Time = 1