The Lead Time, is the time that elapses between the beginning and the end of a process..
Lead Time is measured on the production processes, but also administrative processes.
For example, it could be:
- The time taken for the realization of a product on an assembly line.
- The processing time for the recording of a customer order.
In general, the Lead Time identified in the business concern the crossing time of a set of processes. This can range from raw material procurement to the shipping department via sawing, machining, assembling, packaging.
- Often the entire process combines production processes and administrative processes.
- Between processes, there can be storage areas. The crossing time is also measured here. This measurement is done by applying Little’s Law.