lead time


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Lead Time

In supply chain management, the amount of time between a supplier receiving an order and its delivery to the distributor or customer. This is important for both custom-made products and mass production, and suppliers are expected to know the lead times for their different products. It is particularly important for just-in-time supply chains, in which each step in the supply chain is expected to know precise lead time. It is also called turnaround time.

lead time

the time between placing an order or reorder and the goods being received into stores. STOCK CONTROL systems take the lead time into account when deciding upon reorder levels, placing orders whilst there is sufficient safety stock or BUFFER STOCK to meet production requirements during the lead time. Lead time to manufacture is the time calculated to manufacture a component or final product.
References in periodicals archive ?
An analysis of the lead time indicates that only approximately 11%-17% of the total lead time is consumed by value-added activity--manufacturing.
Lead times are understood and resources are committed based on these lead times.
DeHoff sees a number of organizational "holes" in the practices of both mold builders and their customers that create unnecessarily long lead times.
A more descriptive inventory measurement must incorporate a part's lead time and its open orders.
We are pleased to have the opportunity to continue our work with the O-I team and deliver the full value of our tools and process improvement initiatives across the entire North American business," said Catherine Forsthoffer, VP Sales & Marketing for Lead Time Technology.
Competing on lead time alone requires the other dimensions to improve but not sufficiently enough for lead time to sustain a competitive advantage.
Overall, the casting conversion resulted in a 50% reduction in lead time in a 15-20% reduction in cost while meeting the structural requirements.
CONTACT: Press and Analyst, Cathy Forsthoffer of Lead Time Technology, Inc.
The best moldmakers overseas are not ridiculously cheap, but you can save money on almost any job, and sometimes get faster lead times," reports Wayne Tomko, sales manager of S&L Plastics Inc.
Eight months after that release, customers are reporting consistent 45% to 66% reductions in inventory and up to 85% shorter supplier lead times.
From the customer's perspective, backlogs frequently mean longer lead times, frustration, damaged supplier relationships and often result in business eventually being pulled from the offending foundry.
Lead time is an important indicator of a cancer's aggressiveness.