Takt time is the ideal production tempo required to meet customer demand. It is determined by dividing the available production time available by the planned customer demand. This acts as process optimization an waste reduction optimal production tempo for fulfilling customer orders.
Cycle time refers to the time required to complete a single unit of a product. This time interval starts from the initial stage of production and concludes when the product is fully manufactured. Cycle time may or may not takt time; if the cycle time is less than takt time, the production system can manage to fulfill demand or orders. However, if the cycle time exceeds the takt time, there exists a discrepancy between customer orders and actual production output.
Lead time represents the duration taken for products to move from the start of production through every stage of the production line until delivery to customers. This interval can be divided into three segments: three distinct stages.
