Lead Time Concepts

This table explains important lead time terms and concepts that you must understand:

Type of Hours	Description
Machine hours	The number of machine hours that are required to produce the amount from the time basis code.
Labor hours	The number of labor hours that are required to produce the amount from the time basis code.
Setup hours	The number of hours that are required to prepare machinery to produce a specific item, regardless of quantity.
Move hours	The number of hours that a manufacturing work order is in transit from the completion of one operation to the beginning of the next.
Queue hours	The number of hours that a job waits at a work center before setup or work is performed on it.
Total queue and move hours	The sum of the move hours and the queue hours.
Time basis code	A UDC (30/TB) that indicates how machine or labor hours are expressed for a product. Time basis codes identify the time basis or rate to be used for machine or labor hours entered for every step in the routing instructions, such as 25 hours per 1,000 pieces.
Resource units	The available amount of capacity in a work center for the months in the calendar. As the system calculates the operation start and due dates, it uses the available hours to calculate the operation start dates. You maintain the resource units in the Enter/Change Resource Units program (P3007).
Prime load code	A code that indicates whether a work center is labor-intensive or machine-intensive. The prime load code also indicates whether the system uses the number of employees or the number of machines to determine the daily resource units in the Work Center Resource Units table (F3007). You maintain the prime load codes in the Enter/Change Work Centers program (P3006). For calculating lead times, these prime load code values are valid: L = run labor hours. M = machine labor hours. B = run and setup hours. C = machine and setup hours. O = Other.
Purchased parts	A part bought from a supplier. For any purchased part, you specify the level lead time, which is equal to the cumulative lead time. The manufacturing lead time, lead time per unit, total queue and move hours, and setup times for purchased parts are zero as the default.