Time in Lean Management Explained | Takt, Cycle-, Process, and Lead time - YouTube

Welcome back to our Indemy Student Channel.

So we will continue our lean management lecture,

and today I will share with you about the various terms for time

that normally people use in analyzing their process.

They are takt time, cycle time, process time, and lead time.

And we will discuss the four types of time: about the definition,

how to calculate it, and why do we need this time.

So before that, as usual, I would like to introduce myself.

But I’m sure most of you already know me.

Probably some of you already learned from the previous video.

But for those of you who are new probably you want to know me. So, ya..

My name is Felita Vania. This is my educational background

And I learned engineering and management in production system for my master study

and learned industrial engineering for my bachelor study.

And these are my working experiences that I gained from internships.

And here are list of the companies where I do my internships.

Ya, enough about me. And then let’s dive into our lecture.

So, in this lecture, I would like to use a process example from producing a container box.

So this example will be use for the whole lecture today

because this example will help you to get better understanding or it’s easier for you to understand

and of course it’s easier for me to explain it to you as well.

So in manufacturing this container box, there will be 3 steps or we can say 3 stations.

The first one would be a molding process which is mold the upper and lower part of container.

And then followed with assembly process:

assemble the upper and the lower.

And then the last one would be packing this container box with plastic or box, for example.

So now, we start with takt time. So what takt time is actually?

So, takt comes from a German word which means beat in the music or pulse.

So takt time itself is the pulse of production. For example,

every 5 minutes, a product is produced. So the takt time is 5 minutes.

And it can be also said as a target for the production

that shows how fast the production should be to meet the demand.

And here are the equation for takt time.

So available production time is divided by the customer demand.

But this result is the ideal one because we might need to consider about break time,

or any other factors that interrupt the process. For example, delay, backlog, or something.

Because if we put the ideal one as the actual one, it can only cause damage to your production.

Why? For example, the workers will create more defective products

because they are in a rush to produce a product in order to meet this deadline as the takt time stated.

So with this takt time, the benefit is not only to know the exact time to produce one unit,

but also we can avoid overproduction and maintain the smooth flow.

Estimating delivery for the products can be more accurate as well.

So, it will lead to a better service for your company.

And overall, efficiency of production and organization can be increased as well.

So it’s very beneficial to know your takt time in the process.

And the next one is about cycle time

So cycle time is sometimes defined as the time where the worker or the equipment needs to finish their task,

it could be a movement or it could be also a process.

However, considering the meaning of the “cycle” itself, cycle time itself refers to the time

to produce one unit from the beginning until the end.

this is the equation to calculate cycle time: dividing net productive time by total units produced.

And actually, there are 3 types of cycle time.

Here I will show you from the graph to understand it better.

So there are designed cycle time, actual cycle time, and maximum allowable cycle time.

Designed cycle time shows you only the pure production time without any interruptions in your process.

The actual cycle time, as you can see from the graph, there are overproduction,

machine breakdown, and defect, considers the pure production time added by the waste,

or delays, or any other interruptions in your process.

And the maximum allowable cycle time is actually the time that the workers cannot take longer time than this cycle time.

Otherwise, it will ruin your production rate.

And this maximum allowable cycle time is usually set between 92% to 95% of the takt time.

And knowing this cycle time is also important because this cycle time becomes

a measure to increase your production rate in order to meet the demand.

But… Most people confuse between cycle time and the process time.

So what is this process time actually?

Process time is the time of workpiece spent in a workstation.

So if we want to compare it, actually this amount of process time will be the same as cycle time,

if in one workstation there is only one worker.

So the process time would be equal to cycle time, which is 30 seconds.

But this will lead to a different number of process time and cycle time,

if in one workstation there will be 2 workers.

So, each worker will work parallelly.

And the process time still 30 seconds. Why?

Because a worker needs to finish their product still in 30 seconds.

But in 30 seconds, one workstation can produce 2 products.

That’s why the cycle time will be divided by 2. So 30 seconds divided by 2 is 15 seconds.

And I hope you understand this already the difference between the process time and the cycle time.

And now, let’s take a look what lead time is.

This lead time would be the longest time comparing to the cycle, process, and the takt time. Why?

Because this lead time includes the whole processes from the very beginning until the end.

So, what I mean from the very beginning until very end is actually starting from the order comes in

to the company or to the organization until the payment is received by the company.

So in order to calculate it, the equation is much more easier.

So, order received minus payment received.

And knowing this lead time will give you benefit in giving

more accurate assurance to your customer on how long until they can receive their order.

For example, when you order in Amazon, they will notify you, for example, in 3 days

you will receive your product and this is the lead time that they already calculate before you order based on their experiences.

So this will be very beneficial for you to know all these 4 types of time.

And to sum up, it is actually better to get the cycle time as close as the ideal takt time.

And while trying to improve this cycle time, lead time will automatically improve as well.

So, our end goal should be less lead time as possible.

But if there is a big difference between your cycle time and the lead time.

This means there are problems in your organizational processes.

Why? Because cycle time talks only about the production time, while lead time talks about the whole processes,

not only the production but also your administrative processes.

So if there are big gaps between these times, so you have to take a look

more on your administrative processes and try to improve there.

And that’s all about the explanations about these 4 types of times.

And now, as usual I already provided you a case study or can be said as a question

So take your time, try to calculate the lead time, and feel free to pause the video.

Ok, now let’s discuss the solution. We are asked to calculate the lead time.

So lead time is the time from the very beginning until the end.

So in here, the given information would be about the production time and also the organizational processes

which consists of the shipment and the time that the company needs to receive their payment.

So for the production time itself would be 3 seconds added by 60 seconds and 30 seconds, which is 93 seconds.

And for the organizational processes is: 3 days and 2 days. So the total lead time would be 5 days 93 seconds.

And… that’s all about our lecture. Here are the references that I used to make this lecture.

And thank you for your attention. Thank you for your time.

I hope I see you again in the next lecture. Have a nice day.