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Station cycle time is the work content divided evenly across stations, and it must be at or below takt time — available time divided by demand — for the line to meet its schedule. Capacity is available time divided by the station cycle time, and demand against capacity gives utilisation.
Cycle and takt
Station cycle time = work content / stations; takt time = available time / demand
Capacity
Capacity = available time / station cycle time
Takt time is set by the customer: how often a unit must be finished. Cycle time is what the line actually achieves. Cycle time above takt means the line cannot keep up.
Design cycle time at 85-95% of takt to leave room for minor stoppages and variation. Running at exactly takt means any hiccup creates a shortfall that cannot be recovered.