297Appendix: Glossary
systems transform inputs to outputs and, thereby, deliver products and services of value in
the marketplace.
Takt time: The frequency with which the customer wants a product or how frequently a sold unit
must be produced. The number is derived by taking the amount of time available in a day
and dividing it by the number of sold units that need to be produced. Takt time is usually
expressed in seconds.
Target: The desired goal that serves as a yardstick for evaluating the degree to which a policy is
achieved. It is controlled by a control point, control item, or target item.
Target costing: Method for establishing cost objective for a product or service during the design
phase. The target cost is determined by the followi ...