Hey everyone, welcome to this lecture. What is the formula to calculate tack time, that time is the time needed to produce one unit of a product to meet customer requirements. The formula for calculating tack time is p is equal to T EA divided by TD. Here, T stands for TAC time. Ta stands for net available time to work that is minutes of work per day. And PD is the total customer demand that is units produced per day.

Let's do an example. Let's assume you are a manager of a back office process. You have received 400 transactions in the queue today and you have eight hours to complete those transactions. You have a total of five team members. Let's calculate the tack time. in this situation the PD is 400 the total time is eight hours and there are five team members.

So, the net available time is eight hours multiply by five that is 40 hours converting these hours into minutes would give 2400 minutes this ta is 2400 minutes. So, the TAC time is pa divided by PD that gives 2400 divided by 400 that is six minutes per transaction. So, the inference of this TAC time calculation is to process a customer demand of 400 transactions within 24 hours, you need to process each transaction within six minutes. Hope this was easy. You will do one more calculation. This is an activity that we will discuss in the next lecture.

Thank you for attending this lecture. See you in the next one.