Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 38

How is Takt time calculated and what is it used for?

Step 1 of 2

“The takt time is the rate at which the production needs to be completed in order to satisfy the customer demand.

So it’s defined as the rate at which the work process of the business should be designed so it allows the business to optimize the capacity .It thus helps the business to satisfy the demand without keeping an excessive amount of inventory within the process.”