Lean Management Dictionary - Time, strategy and leaders in Lean: Takt Time, VSM and Gemba

What is Takt Time?

Takt Time is the production rhythm determined by customer demand. It determines how much time one piece should be produced every time in order to meet orders.
Example: Customer orders 480 units per day → Takt Time = 1 unit every minute.

What is the difference between Cycle Time and Lead Time?

  • Cycle Time- the time it takes to make one piece of product.
    Example: The assembly of the component takes 45 seconds.
  • Lead Time- the time from placing the order to delivery of the finished product to the customer.
    Example: Monday to Friday = 5 days.

What is VSM (Value Stream Mapping)?

of VSM is value stream mapping, an analysis of the entire process from order taking to product delivery. It reveals where the process generates value and where waste is created. The map shows the actual flow of material and information, times, inventories and places of waste, so that a future state can be designed with better flow and less waste.
Example: The map shows that intermediates wait on average several days between operations, generating excessive stocks and long process transition times.

What does Hoshin Kanri offer?

Hoshin Kanri is a method of implementing strategy across the organisation by cascading objectives and actions. A key element is catchball - the iterative exchange of information between levels of the company to ensure consistency of objectives and realistic plans.
Example: target „reduce complaints by 30%”. → the quality department introduces daily product inspection.

How does TPM work?

TPM (Total Productive Maintenance) is a comprehensive approach to maintenance that aims to maximise machine availability and reliability by involving operators, maintenance and production.
Example: the operator checks the machine daily instead of waiting for service once a month.

Why is Gemba the key for leaders?

Gemba is „where the work happens” - i.e. where customer value is created (e.g. production hall, construction site, office). Leaders should be present where the work actually happens to see problems at the source.
Example: manager goes to the production line instead of relying solely on reports.

What does Genchi Genbutsu mean?

Genchi Genbutsu is the „go and see for yourself” principle. Decisions are based on facts, not just indirect data.
Example: engineer checks the machine on site, rather than just analysing the results in Excel.

Summary - Lean in leadership practice

  • Takt Time, Cycle Time and Lead Timeallow the speed and effectiveness of processes to be measured.
  • VSM, Hoshin Kanri and TPMsupport the implementation of the strategy and the sustainability of operations.
  • Gemba and Genchi Genbutsuteach leaders to make decisions based on reality rather than assumptions.

FAQ - Time, strategy and leaders in Lean

What is Takt Time?

Takt Time is the rhythm of production determined by the rate of customer orders. It shows how quickly a product has to be created to meet demand.

What is the difference between Lead Time and Cycle Time?

Lead Time is the time from order to delivery and Cycle Time is the time it takes to make one piece. Together they show how efficient the whole process is.

What is value stream mapping (VSM) used for?

VSM allows you to analyse the entire process - from order to delivery - and pinpoints where time or resources are being wasted. It is a tool for eliminating waste.

Why is Gemba so important in Lean?

Gemba is where value is actually created. Leaders who visit Gemba have a better understanding of problems and make better decisions.

Author:

Adam Barański

President of BE Partners and an experienced Lean consultant. He specialises in Lean Construction, process management and waste elimination. He has been supporting companies in transformations for years, combining strategic approaches with practical solutions for companies.