Lead Time and Takt Time: how to boost production efficiency with the support of MES
TREND & INNOVATION 28/07/2025
Lead Time and Takt Time: how to boost production efficiency with the support of MES
Reading time: 4 minutes

A practical guide to Lead Time and Takt Time: what they are, how to calculate them, and why they are essential to improve production performance.

In today’s fast-paced market, the difference between a thriving company and one struggling to keep up is measured in seconds.
Two metrics reveal whether your production is aligned with your goals: Lead Time and Takt Time.
Understanding, monitoring, and most importantly optimizing them means reducing waste, improving customer satisfaction, and increasing competitiveness.

With the support of a Manufacturing Execution System (MES) like MES, you can monitor, analyze, and optimize both metrics transforming every data point into a concrete competitive advantage.

See detailed page on /.MES

 

What is Lead Time?

Lead Time is the total time between the start and the end of a production process. In manufacturing, it often corresponds to the time between receiving a customer order and delivering the finished product.

But it’s not just about processing time. Lead Time also includes:

  • Waiting time between process phases

  • Setup and format changes

  • Internal handling and transport

  • Quality checks and rework

  • Unexpected machine downtime

Formula:
Lead Time = Waiting Time + Processing Time + Auxiliary Times

The longer the Lead Time, the higher the risk of delays, extra costs, and dissatisfied customers.

 

What is Takt Time?

Takt Time represents the pace at which a product must be completed to meet customer demand—without overproduction or shortages.

Formula:
Takt Time = Available Production Time / Customer Demand

Practical Example:
If you have 8 hours of available production time (28,800 seconds) and the customer requires 240 pieces per day:
28,800 / 240 = 120 seconds per unit

Producing slower than this means failing to meet demand. Producing faster can lead to excess inventory or overburdened resources.

 

Lead Time and Takt Time

Analyzed individually, each provides valuable insights. Compared together, they offer a comprehensive view of production performance.

  • Lead Time shows how long it actually takes to complete an order.

  • Takt Time indicates the pace you need to maintain to stay competitive.

Monitoring both allows you to:

  • Identify bottlenecks

  • Uncover hidden inefficiencies

  • Avoid overstocking or shortages

  • Balance production capacity with real demand

 

The role of MES: your key ally in managing Lead Time and Takt Time

An MES like MES is a powerful ally for companies seeking greater visibility on the shop floor and faster, more informed decision-making.

With MES you can:

  • Monitor waiting times and machine downtimes

  • Detect real-time deviations from Takt Time

  • Analyze historical data to reduce Lead Time

  • Integrate data collection with planning and quality systems

Thanks to its modular, customizable, and integrable architecture, MES is the ideal tool to increase productivity and improve process control.

 

Strategies to optimize Lead Time and Takt Time

1) Digitization and automation
An MES automates data collection and gives full visibility into your processes. The result? Fewer errors, faster response times, and greater efficiency.

2) Real-time monitoring
Access to real-time data allows you to act immediately on anomalies, deviations from Takt Time, and unexpected delays.

3) Continuous improvement through analysis
By combining historical and real-time metrics, you can take corrective action quickly, build custom KPIs, and foster a culture of continuous improvement.

4) Smart planning
A good MES integrates with APS (Advanced Planning and Scheduling) tools, optimizing production cycles and machine workloads to reduce Lead Time and meet Takt Time requirements.

 

Common mistakes to avoid in managing Lead Time and Takt Time

  • Overlooking auxiliary times: setup, cleaning, and format changes must be tracked precisely.

  • Making decisions without reliable data: assumptions without real-time insights lead to poor results.

  • Lack of cross-departmental communication: disconnected workflows between production, logistics, and planning create inefficiencies.

 

Ready to reduce your Lead Time and improve production flow?

Implementing MES doesn’t just mean going digital it means shifting into a higher gear. It’s the first concrete step toward a smoother, more efficient production process aligned with actual market needs.

Tell us about your goals, we'll help you reach them.
Contact us