
$how Me the Value Stream Flow • 23
Supplier
Purchase Forecasts
S & OP
Demand Forecasts
Customer
Order
3,000
per Month
Shipping
Assembly
Welding
FIFO
FIFO
Machine
Shop
Cycle Time =
180s
Cycle Time =
70s
1. 470 seconds (cycle time)/600 seconds (takt time) = 78%
is means the value stream can flow this level of demand.
2. What happens if demand increases to 60 units per day (or a takt time of 400)?
470/400 = 118% which means this value stream cannot flow at this level of demand
unless more resources are used to reduce cycle times.
Cycle Time =
100s
Cycle Time =
120s
Total Cycle Time
= 470 seconds
Kanban
FIGURE 3.5(b)
Understanding how Takt Time and cycle time aect ow.