Manufacturing Lead Time

Manufacturing lead time is the total number of workdays required to complete a product, from its lowest-level components to the final item, assuming that all purchased items are in-house.

Manufacturing lead time includes:

• Order preparation time

• Queue time

• Setup time

• Run time

• Move time

• Inspection time

• Putaway time

Manufacturing lead time is the total of the level lead time for an item plus the longest manufacturing lead time for any of its components. Lead time for purchased items is not included in manufacturing lead time calculations.

This process flow, which depicts the calculation for manufacturing lead time, illustrates where the manufacturing lead time occurs in the process for a manufactured item: