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.
The time required to complete the order – from order receipt to product/service delivery to the consumer.
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)
The time required to develop and deliver a new product or service from concept to launch.
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.