Detail

Glossary

Lead time (also throughput time)

In lean philosophy, lead time is seen as the key indicator. Lead time is proportional to the level of excess production and inventory in the value stream. It is based on the time that a component needs to get from the raw material stage to the customer.

To calculate lead time in:

  • Batch production: processing time + transport time + idle time
  • Single-piece production: Time from order input to operation