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    What Is Lead Time ?

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    Shashank Kumar Singh
    Lead time refers to the total time needed to process an order from initiation to completion in a production process or supply chain. Factors like styling, number of parts and operations, and interdependencies between processes determine lead time. Work in process (WIP) consists of products that are being manufactured but not complete, including materials, labor, and costs. Production aims to minimize WIP since it requires storage space and capital. A high WIP can increase throughput time, which is the total time for a style to go through production, as there is more backlog ahead of each operation.

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    What Is Lead Time ?

    Uploaded by

    Shashank Kumar Singh
    78 views7 pages
    Lead time refers to the total time needed to process an order from initiation to completion in a production process or supply chain. Factors like styling, number of parts and operations, and interdependencies between processes determine lead time. Work in process (WIP) consists of products that are being manufactured but not complete, including materials, labor, and costs. Production aims to minimize WIP since it requires storage space and capital. A high WIP can increase throughput time, which is the total time for a style to go through production, as there is more backlog ahead of each operation.

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    LEAD+TIME

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    Lead time refers to the total time needed to process an order from initiation to completion in a production process or supply chain. Factors like styling, number of parts and operations, and interdependencies between processes determine lead time. Work in process (WIP) consists of products that are being manufactured but not complete, including materials, labor, and costs. Production aims to minimize WIP since it requires storage space and capital. A high WIP can increase throughput time, which is the total time for a style to go through production, as there is more backlog ahead of each operation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    78 views7 pages

    What Is Lead Time ?

    Uploaded by

    Shashank Kumar Singh
    Lead time refers to the total time needed to process an order from initiation to completion in a production process or supply chain. Factors like styling, number of parts and operations, and interdependencies between processes determine lead time. Work in process (WIP) consists of products that are being manufactured but not complete, including materials, labor, and costs. Production aims to minimize WIP since it requires storage space and capital. A high WIP can increase throughput time, which is the total time for a style to go through production, as there is more backlog ahead of each operation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    LEAD TIME

    • What is lead time ?


     The time interval between the initiation and
    the completion of a production process.
     In terms of a supply chain, the total time
    needed for an order to be processed.

    1
    Factors determining the lead time of a
    product
    • Styling
    • No. of parts in the product .
    • No. of different operations on each part .
    • Extend to which the processes are
    dependent , that is processes which cannot
    be performed until previous operations
    have been completed .

    2
    WIP – Work In Process
    • Work in process consists of products that
    are in the process of being manufactured
    or fabricated but are not yet complete .
    Work in process consists of the cost of
    direct materials , direct labour , direct
    purchased services and indirect costs
    including general and administrative costs
    , used in producing an end item .

    3
    • Work in process or in-process inventory
    concept is used in production and supply
    chain management.
    • Production management aims to minimize
    work in process. Work in process requires
    storage space, represents capital
    investment and presents a risk of
    expiration of the goods. A queue to a
    production step shows that the step is
    probably under-capacity with respect to
    other steps.
    4
    Throughput time
    • Throughput is the volume of work that
    can be completed in a specific amount of
    time . The time block may be hour , day or
    week .
    • Throughput time is the amount of time it
    takes for a style to go through the
    production process , cutting to shipping .

    5
    • It includes actual processing time and the
    time a style waits to be processed ahead
    of each operation .
    • It can be minutes , days or weeks .

    6
    Effect of WIP on the throughput
    time
    • When WIP is more , throughput time
    increases due to back log ahead .

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