Lead time

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Left lead is the latency between initiation and execution of a process. For example, the grace period between order placement and new car shipments from the manufacturer could be anywhere from 2 weeks to 6 months. In industry, lead time reduction is an important part of lean manufacturing and lean construction.

Journalism

The lead time in the publication describes the amount of time a journalist has between receiving a writing assignment and submitting a completed part. Depending on the publication, the lead time can be anything from a few hours to months/years.

Video Lead time

Medicine

Lead time (when referring to illness) is the length of time between detection of the disease through screening and times where it usually appears with symptoms and causes a diagnosis. This example is seen by screening a population of breast cancer, in which asymptomatic women have positive test results with mammography, whereas underlying illness will take years to manifest.

Maps Lead time

Supply chain management

The definition of a more conventional lead time in the world of supply chain management is the time from which the customer orders (when the supplier learns the requirements) until it is ready for delivery. In the absence of finished or intermediate goods inventory (working in process), this is the time it takes to actually produce an order without supplies other than raw materials. The Chartered Institute of Procurement & amp; Supply identifies "total lead time" as a combination of "internal lead time" (the time required for internal organizational purchasing processes to advance from the identification of the need for purchase order issues) and "external lead time" (time required for the supplier organization process, including each necessary development, manufacture, shipping and delivery).

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Manufacturing

In a manufacturing environment, lead time has the same definition as Supply Chain Management, but includes the time it takes to ship parts from suppliers. The delivery time is included because the manufacturing company needs to know when parts will be available for material requirements planning. It also allows waiting time to include the time it takes for the company to process and have parts ready for production once it is received. The time it takes a company to unpack the product from a truck, inspect it, and move it to a storage area is not trivial. With the tightness of manufacturing constraints or when companies use Just In Time manufacturing, it is important for the supply chain to know how long their internal processes are.

Lead time is made from:

• Lead Preprocessing Time (also known as "planning time" or "document"): This represents the time it takes to release a purchase order (if you purchased an item) or create a job (if You make stuff) from the moment you learn the requirements.
• Processing the Timing Time : This is the time it takes to get or create an item.
• Postprocessing Process Time : This is the time to make purchased items available in stock from the moment you receive them (including quarantine, inspection, etc.)

Example

Company A requires parts that can be produced within two days after Company B receives the order. It takes three days for company A to receive parts after being shipped, and one additional day before the part is ready to enter manufacturing.

• If the Company Supply Chain A calls Company B, they will be given a 2 day waiting period for that section.
• If the Manufacturing Division of Company A asks for the Supply Chain division what lead time, they will be quoted 5 days from the shipment will be entered.
• If a mobile worker asks the Manufacturing Division's boss how much time before it is ready for use, it will be 6 days because the setup time will be included.

More details

Lead Time terminology has been defined in more detail. The Supply Chain of the customer order is received at the time the order is shipped divided into five lead time.

• Ordering Lead Time - The time from customer's order is received to the customer's order sent.
• Order Handling Time - The time from customer's order is received to the sales order is made.
• Manufacturing Production Time - The time of sale order made for production is complete (ready to ship).
• Lead Production Time - Time from start of physical production of submodule/first part until production finished (ready to be shipped).
• Shipping Delivery Time - The time from production is completed until customer orders are sent.

Example

A restaurant opened and a customer entered. A waiter leads him to the table, gives him a menu and asks what he wants to order. The customer selects the dish and the waiter writes it on his pad. At that time the customer has made an order received by the restaurant - Order Time and Order Handling Time has begun. Now the waiter marks the order at the cash register, rips the paper from the notepad, takes it to the kitchen and puts it into the queue order. Orders have been handled and are waiting in the factory (kitchen) for manufacture. Since there were no other customers, the waiter decided to stand outside the kitchen, next to the door, wait for the dish to be prepared and start counting Leading Time Manufacturers.

Meanwhile, the chef finishes what he does, takes orders from the queue, starts his watch as a sign of the start of Lead Lead Time and starts cooking. The chef cut the vegetables, fried the meat and boiled the pasta. When the dish was ready, the chef rang the bell and stopped the clock. At the same time the waiter stopped counting the Manufacturing Lead Time and hurried through the kitchen door to pick up food while it was hot.

When she picks it up, start counting the Delivery Time that ends when the dish is served to the customer, who is now happy to say that Order Order Time is shorter than expected.

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Order lead time

When it comes to Order Lead Time (OLT), it is important to distinguish definitions that may exist around this concept. Although they look similar there is a difference between those who help the industry to model the behavior of their customer orders. Four definitions are:

• Actual Lead Order Time (OLT _Actual ) Order timeout , refers to the elapsed time between the customer's order acceptance (Order Entry Dates) and shipping goods. "
• Request Order Lead Time (OLT _{Requested ) indicates the time between the Order Entry Date and the customer requested the date of delivery; these measurements can help companies understand customer order behavior and help design profitable models to meet customer needs.}
• Lead Time Order Quotes (OLT _Quotations ) is the time agreed between the Order Entry Date and the supplier committed to giving date of goods as stipulated in the supply chain contract.
• Confirmed Order Lead Time (OLT _Confirmed ) represents the time between the Order Orders Date and by the authenticated supplier date delivery of goods.

OLED formulas OLT

• OLT _{Requested = Date of Desire - Date of Order Entry}

OLT _{Requested will be determined by the difference between the date the customer wants the material in the facility (the expectation date) and the date when they give the order to the supplier.}

• OLT _Quote = Quotation Date - Order Entry Date

OLT _Quotations will be determined by the difference between the date the customer agrees to receive the materials at their facility (Date of Citation) and the date on which the order is given to the supplier.

• OLT _Actual = Delivery Date - Order Entry Date

OLT _Actual will be determined by the difference between the day the provider sent the material (Delivery date) and the date when they entered the order in the system.

• OLT _Confirmed = Date of Confirmation - Order Entry Date

OLT _Confirmed will be determined by the difference between the date date authenticated by the provider to deliver the material in the customer facility (the confirmed date) and the date on which they provided the order to the supplier.

OLT Average by volume

OLT Average by Volume (OLT ^V ) is the addition of all the multiplication between the volume of products we provide (quantity) and OLT divided by the total amount sent within the period of time we study for that particular facility.
${\ displaystyle OLTV = {\ frac {\ sum _ {j} {Quantity_ {j} \ cdot OLT_ {j}}} {_ {TotalQuantityDeliver}} } \,} Â Â$
By doing this the company will be able to find a weighted volume relationship between the amount of material required for the order and the time it is requested to achieve. Volume metrics can be applied to 4 types of OLT.
The figures obtained from this calculation will be the average time (eg in days) between the order placement and the requested delivery date from a particular customer based on the average amount of consideration booked during a given time.

Potential application areas for order lead measurement measurements

The correct analysis of OLT will give the company:

• A better understanding of market behavior so as to develop more profitable schemes that better fit customer needs (Revenue Management).
• Improve the company's ability to detect and correct any behavior that is not in accordance with the terms of the contract (with different penalties or contract schemes).
• OLT measurement creates an opportunity area for improving customer relationships by increasing the level of communication with them.

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Project management

In project lead time management is the time required to complete a task or a set of interdependent tasks. The leadership of the entire project will be the overall duration of the critical path for the project.

Lead time is also a time saved by starting an activity before its predecessor is done.

According to PMI (2008), lead is a dependency between two activities (p.40). An example is the initial scheduling of a 2-week activity that depends on the end of the successor activity with a 2 week outlook so they will finish at the same time.

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See also

• Deadline
• Security stock
• Latency (technique)

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References

Source of the article : Wikipedia