In the world of manufacturing, it is common to mistakenly use concepts that may be associated with the same topic or root, even though they refer to different principles. That is the case of Takt time, Cycle time and lead time. Although They are related to periods of time within a process, their areas of use, apllication and calculation are different, so being able to understand the difference between them can be useful for their use, which is normally the case. aimed at optimizing manufacturing processes. However, as there are similarities there are also differences, so here we will explain in detail how you can differentiate them to use them for the benefit of your company from a general perspective to the use of advanced solutions such as Smart Factory, when using systems integration such as MOM , MES, IIoT and APS to revolutionize the way of managing these times.
What are Takt Time, Cycle Time, and Lead Time?
To analyze these points, let’s start from the initial point, the definition of each term and how each one works:
Takt Time: The Rhythm of the Process
Definition: By definition, and due to its linguistic origin (the combination of two words, takt, of German origin, meaning speed, rhythm, or beat, and time), takt time is considered a rhythmic or timed beat. In the field of production and manufacturing, takt time calculation is used to represent the maximum time allowed to produce a unit of a product and satisfy customer demand.
Formula:
Purpose: Synchronizes production pace with market demand, preventing overproduction or underproduction.
Cycle Time
Definition: The Cycle time in the manufacturing context, its a words used to refers to the total time required for the production of a single unit, that is, the time of a complete production cycle, from the start of the product to the end of its manufacturing process.
In general, all activities are considered to calculate this time, including (but not limited to) machine processing times, operator tasks, material handling management time and any other step or event that was recorded. time and is involved in the manufacturing period and is within the production sequence.
Purpose: The calculation of the cycle time is performed by his use as a metric, where it helps to have a measures operational efficiency and identifies areas for improvement in task execution., the cycle time is a crucial metric besides in assessing the efficiency and effectiveness of production operations, as it reflects the time taken to produce an individual product or component.
Lead Time
Definition: In contrast to the two previous terms, is a time that extends beyond what happens within the operation. This time refers to the total time that passes or elapses between the two moments of a product for a company manufacturing, this time begins when the customer places an order and ends at the time of delivery (when the customer receives it). This time measurement considers all processing, manufacturing and delivery periods.
Purpose: The purpose of delivery time is to provide the temporal relationship (which is valuable information) about the general flow of the process, that is, it focuses mainly on tracking and having
temporal traceability of the period measurement between production stages from the moment of the order, its completion and until the final delivery.
Its main use is to be a measurement unit that allows (either through capture, analysis or control) to identify areas of inefficiency or delays, which helps optimize your processes and improve resource allocation.
Key Differences Between Takt Time, Cycle Time, and Lead Time
All these metrics (both takt time, cycle time and lead time) have things in common, since they are auxiliary in identifying bottlenecks, their use has a wide spectrum of action in improving efficiency, and with his use or his analysis the companies can align production with customer demand. In summary we can see the key differences and criteria in the follow table:
Aspect |
 Takt Time |
 Cycle Time |
 Lead Time |
|---|---|---|---|
| Focus | Aligning production with customer demand. | Measuring efficiency of a specific task. | Evaluating the entire process from order to delivery. |
| Scope | Entire production line. | Individual processes or machines. | Full order lifecycle, including non-production tasks. |
| Calculation | Based on available time and demand. | Based on task duration. | Encompasses all activities, including waiting times. |
| Improvement Goal | Prevent overproduction or underproduction. | Reduce time required for each operation. | Minimize delays and optimize workflow. |
Traditional vs. Smart Factory Management of Time Manufacturing Metrics
Traditional Management
As such, the use of these times as base metrics for continuous improvement is not a new concept, therefore, since their consideration as measurement parameters, there have been several ways of not only using them but also analyzing them or even calculating them, which is why it is possible to say that There is a traditional way these concepts are applied in manufacturing environments. Even though it is not recommended, today there are still companies that use these metrics calculated in a traditional way, that is, the information base for metrics such as Takt Time, Cycle Time and Lead Time is very often managed in traditional companies using methods. data collection manuals, such as: time studies, log books and spreadsheets.
Being based on or using manual methods, it is not difficult to understand that, although these ways of doing it are not bad, they do present more than one problem such as:
- The time they take as they require significant human effort.
- The veracity of the data is compromised, as they are prone to errors or alteration.
- The loss of information or difficulties in its conservation and maintenance (since sometimes they are in physical form or in unreliable spreadsheets).
On the other hand, traditional systems have large areas of opportunity in capturing information; they apply lean criteria (such as kairzen, value stream mapping or swimlane) to analyze the information. However, it can be said that today traditional monitoring systems are easily overwhelmed, having a limited capacity to provide information in a timely manner, which makes them more reactive to problems that have already occurred. Therefore, it is understood that in traditional approaches it is difficult for both managers and production operators to identify something beyond the problems or bottlenecks after they have already affected their process, thus making it difficult to address the problems in a timely manner.
Smart Factory Management
On the contrary, and independently, advanced manufacturing environments or those that use technology for the attention or management of these metrics (such as Smart Factory) take advantage of technologies such as; MES (Manufacturing Execution Systems), MOM (Manufacturing Operations Management), IIoT (Industrial Internet of Things) and APS (Advanced Planning Systems) to manage these metrics with a great advantage over traditional methods, they do it in time real.
This occurs from the birth of the information itself, that is, from the collection of data, which is automated (with the use of sensors, IoT-enabled devices and integrated software systems) or with tracking
to the minute they occur (when they are data manuals entered through interactive and electronic tracking platforms such as MES systems) thus having continuous monitoring of Takt Time, Cycle Time and Lead Time while having an additional benefit of being a much more precise, truthful and available information base. at all times. Modern manufacturing systems such as MOM, MES, IIoT, APS and OEE software provide real-time visibility of production flows to allow adjustments to be made remotely to processes, in a dynamic and optimized way, thus freeing up the potential use and allocation of resources.
Finally, and very objectively, the integration of other information management and understanding advantages, such as predictive analysis and machine learning or the use of AI in your data, further improves efficient decision making, allowing proactive responses to possible delays or inefficiencies, supported by hard data analysis and trends. With all this we can say that advanced manufacturing systems such as Smart Factory (with modules such as MES, APS, IIot) can not only speed up the obtaining of information from your production floor, but also have an important effect on the analysis, since they allow real-time administration that results in ease of continuous improvement in a more agile and efficient way.
Practical Scenarios: Takt Time, Cycle Time and Lead Time in Action
Scenario 1: Takt Time Misalignment in a Production Line
Challenges:
A production line produces items of a specific product faster than customer demand, it still occupies the machine more than required, however there is another delayed product that needs to be produced, which generates an overproduction of product A and a failure to deliver product B, this line overproduces, which causes the product stock area to be full and these remain stored for too long, running the risk of damage or inventory management problems. finished product, and on the other hand it is not producing what is truly needed from product B, generating a delivery failure and loss of trust from another client.
Smart Factory Solution:
Smart Factory APS dynamically calculates and adjusts the schedules and production plan so that they coincide with the Takt Time, the lines must produce at a target pace based on delivery time and maintain breaks or production plan, accordingly, thus reducing overproduction. and staying adjusted to demand, planning adjustment can be made based on demand and expiration date, in addition to considering available time to balance production and on the one hand reduce the use for one product and achieve the delivery in another.
IIoT sensors detect downtime or excess production and notify operators to reduce the speed of the machine, so although the machine has the capacity to produce more, a decelerated pace is required, at some times, the specific resource for a different product and maintain its monitoring to avoid problems related to the execution of its process and achieve compliance with the production plan released (by the APS module) that is defined.
Scenario 2: Cycle Time Variability for Different Products Between Shifts
Challenges:
The production operators of a company have process problems due to stoppages into a production line, since in a semi-automatic workstation they take longer to complete tasks, which creates a bottleneck in shifts 1 and 2.
Smart Factory Solution:
The MES system identifies workstations with extended cycle times through its data analysis in production dashboards, showing the supervisor possible stoppages to attend to and obvious delays in two of the three operating shifts.
The decision is made to generate E-SOPs that can provide real-time guidance and execution guidance to operators. These are designed based on the recommendations and actions of shift 3, which has best practices and better execution, thus standardizing them. the manual process of the operation without the need to carry out intensive training.
Through the IIoT system, the performance of the operator vs. the machine is monitored, suggesting calibration or maintenance needs for the equipment to reach the maximum operational capacity. This, together with the guided operation, solves the problem.
Scenario 3: Reduction in Delivery Time Due to Frequent Customer Priority and Higher Cost Product
Challenges:
A company is presenting a problem in selling its products, within its customer portfolio, a specific one is a frequent customer and the product they purchase is of high cost, however they found that there are problems for a delivery due to delays in preparation of materials and the prioritization of orders that increase delivery time, which is why it is necessary to prioritize your order and readjust the schedule to deliver on time and not lose the sale or the customer’s trust.
Smart Factory Solution:
IIoT monitors the status of the machines and sends to the APS module all information on capacities, current usage, schedules and efficiency of the machines, ensuring that the machines arrive on time and the workstations function properly.
The information in the Smart Factory APS module is updated, new validation and addressing criteria are defined, and orders are dynamically rescheduled with APS rule adjustment to prioritize urgent customer requests, all using customer prioritization and delivery date. expiration as a target, thus obtaining a feasible schedule for delivery, organizing the product queue efficiently, finally, the materials explorer and shortage report provides what materials will be needed on what date and how to be able to organize and achieve the objective.
MES tracks the materials in real time, verifies the stock and in coordination with what the APS system orders, it can organize and define what is missing, when it should arrive and how it should enter to reach the goal.
Conclusion
Understanding the functional differences between Takt Time, Cycle Time and Lead Time is essential to understand their use to improve manufacturing efficiency, but you must understand that managing them effectively is of no less importance, as this requires more than methods. traditional ones, which, although they may work well, may be doing so very slowly or without the desired effectiveness. Therefore, it is important to know more than one way to do it, this is where Smart Factory Software Solutions such as MOM, MES, IIoT and APS come in, which are solutions that can transform the processes of obtaining, analyzing and using these metrics, by accelerating obtaining information and improving the way it is quickly converted into actionable information, thus allowing manufacturers to use (such metrics) to dynamically adapt their processes to changing demands.
If you take advantage of new methodologies supported by modern technologies, your companies could in the short term achieve faster, smarter and more efficient production processes, which in the end is ultimately reflected in preserving, improving and even offering better value. to clients, in simple terms you can achieve more with less or the same thing in less time.
Contact us today to learn more about how we can help you implement, train, and maintain the Smart Factory MOM solution and count on us to help you overcome any hurdles along the way.
