Lead Time

Lead Time

By admin November 15, 2017

What is Lead Time?

Lead time is the time required to complete the set of processes – from start to finish.

There are 3 types of such measures in Business Process.

Order LT

The time required to complete the order – from order receipt to product/service delivery to the consumer.

Processing LT

The time required to convert the Raw Material into Finished Product (or Production LT) or

The time required to convert input information into output information (Service Production LT)

Development LT

The time required to develop and deliver a new product or service from concept to launch.

Importance

This becomes an important metric in modern business, as customers want their orders delivered quickly.

In Lean, it gets the high focus. Because it determines the Cash to cash cycle time.