"Takt time is a customer demand calculation. It is defined as the production rate needed to finish an item and meet demand. For instance, if you receive a new order for a product every six hours, then the team needs to complete a product in six hours or under to meet customer requirements (orders). If a product takes longer to build than it's Takt time, something must change, such as design, buffers, manpower, technology or tools used, etc. That's where industrial engineering solutions come in. To calculate Takt time, you need to divide the Total Available Production Time by Average Customer Demand. Cycle time is the sum of the elapsed time it takes to transfer a unit of work from the start until the finish of a physical process. It is defined by the customer and the firm. Lead time, which is an essential part of the planning process, is defined as the time it takes to prepare and produce material and ship it to the customer. In other words, it is the initiation to completion of material in a production process."
