Process Lead Time is an amount of minutes, hours, or days that should be allowed for the completion of some process. It is a scheduled period that begins once the process has been launched and elapses once the process has been delivered. For example, lead time for the manufacturing process means the total time required to manufacture a product item, including all the operations and procedures related to this item.
Lead time defines the time needed to accomplish some process. Mathematically, it can be presented as the difference between the finish and the start of a process. It can be calculated by this formula:
Lead Time = Finish Time - Start Time
There are two types of process lead time, as follows:
- Variable lead time, which is depended on process parameters
- Fixed lead time, which is independent on process parameters
Lead time means a delay that arises once a process is started and through its completion. For instance, placing an order is the start point of the selling process, and delivering the order is the final stage of this process. The lead time will be the difference between the time the order is delivered and the time it is placed.