Definition of Lead time:
Reducing lead time can streamline operations and improve productivity, increasing output, and revenue. By contrast, longer lead times negatively affect sales and manufacturing processes.
Lead time is the amount of time that passes from the start of a process until its conclusion. Companies review lead time in manufacturing, supply chain management, and project management during pre-processing, processing, and post-processing stages. By comparing results against established benchmarks, they can determine where inefficiencies exist.
Number of minutes, hours, or days that must be allowed for the completion of an operation or process, or must elapse before a desired action takes place. See also manufacturing lead time.
The time between the initiation and completion of a production process.
How to use Lead time in a sentence?
- Some monthly magazines have a lead time of six months or more.
- Factors that can impact lead time include lack of raw materials, breakdown of transportation, labor shortages, natural disasters, and human errors.
- I would not have ordered the product If I knew the typical lead time and that it would take anywhere from 4 to 8 weeks to get to me.
- If you want to make sure that everyone is ready at the end of a project you need to accurately assess the lead time .
- In manufacturing, lead time often represents the time it takes to create a product and deliver it to a consumer.
- The lead time was far too high for our business to be a success so we searched for inefficiencies to improve upon.
- Lead time measures how long it takes to complete a process from beginning to end.
- In some cases, companies can improve lead times by implementing automated stock replenishment and just-in-time (JIT) strategies.
Meaning of Lead time & Lead time Definition