It is the maximum amount of time requires to produce the product and satisfy the customer's demand. It is in other words: Net time available to work per unit of customer's demand or Takt time (T) = Net time available to work (Ta)/Demand (customer demand) (D)
T = Takt time
Ta = Net time available to work, e.g. [working 8 hours per day]
D = Demand (customer demand), e.g. [units required is 1000 qty per day]
If there are a total of 8 hours (or 480 minutes) in a shift (gross time) less 30 minutes lunch, 20 minutes of tea breaks (2 × 10 mins), 10 minutes for a meeting with team, then the net Available Time to Work = 480 - 30 - 20 - 10 = 420 minutes. If customer demand were 840 units per day and one shift was being run, then the line would be required to output at a minimum rate of two parts per minute in order to satisfy the customer's demand.
It keeps track of production rates
It helps us to set real-time targets for production and reduces unnecessary wastes.
We can achieve a consistent flow of production by using takt time
We can eliminate the waste of overproduction by producing to meet actual customer demand.