What is lead time

Simply put, lead time is the time taken to meet a customer requirement.

For example when ordering goods the lead time is the time it takes from the initial request to the provision of the goods ordered.

Measuring lead time is very important and one of the common results of business improvement programs is that lead time is reduced.

QCD (Quality, Cost, Delivery) measures are the three foundation measures that can be applied to businesses and as such lead time adherence – or delivery schedule adherence is often a key measure used within industry – for example if a supplier stated that goods would have a lead time of six weeks – was that six weeks met? A failure to comply with stated lead time can have both financial and process repercussions and as such is an important part of lean concepts.