What is takt time and how is it calculated?

Takt time is the rate at which products must be completed to meet customer demand. It is calculated as: Takt time = Available production time / Customer demand. For example, if a plant operates 960 minutes per day and needs to produce 480 vehicles, takt time is 2 minutes. This means one vehicle must exit the line every 2 minutes. Takt time sets the pace for all workstations and drives line balancing decisions. If actual cycle time exceeds takt time, production cannot meet demand. Takt time synchronizes operations throughout the value stream and is a fundamental lean manufacturing concept.