Very often, people question the concept of takt time? Takt time is often presented using the following formula:
Takt time = Available Working Time per day / Average Units Demanded per Day
There is nothing wrong with this formula; however, one must understand the purpose behind takt time in order to understand whether or not to use this formula. Takt time is used for understanding rate of sales relative to the operating time of a factory or service organization. For example, if we calculate a takt time of 20 seconds per vehicle in an automotive assembly plant, we would then set up our operations to produce one automobile every 20 seconds. However, what if we are dealing with a high mix, low volume environment like a job shop? Does takt time apply? How can we utilize this concept. In this lean manufacturing video, takt time is explained.