Note: This article has been consolidated into our main guide: Takt Time vs Cycle Time, which is kept up to date.
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Takt time is the rate at which you need to complete a product to meet customer demand. It is calculated by dividing available production time by customer demand for that period. Takt time sets the pace that production should match to deliver on time without overproducing.
Takt time equals available production time divided by customer demand. For example, if you have 420 minutes of production time in a shift and demand is 210 units, takt time is 2 minutes per unit, meaning one unit must be completed every 2 minutes to meet demand.
Takt time is the pace required to meet demand, while cycle time is how long it actually takes to produce one unit. If cycle time is longer than takt time, you cannot meet demand; if it is shorter, you have spare capacity. Comparing the two reveals bottlenecks.