Lead Time
The term “lead time” can be used in different ways, but generally speaking, lead time is the amount of time that passes between the start of a process and the completion of that same process. In manufacturing and procurement, lead time is the amount of time it takes to procure raw materials and convert them into a finished product.
Lead times can vary greatly depending on the product being manufactured and the efficiency of the manufacturing process. Some products may have relatively short lead times of just a few days or weeks, while others may take months or even years to complete.
In general, shorter lead times are better for businesses because they can get products to market much faster. However, shorter lead times also often mean higher costs, as rushing through the manufacturing process can lead to mistakes and damaged goods. As such, it’s important for businesses to strike a balance between Lead Time Definition achieving their desired lead time and ensuring that their products are of high quality.