The amount of time that elapses between when a process starts and when it is completed. Lead time is examined closely in manufacturing, supply chain management and project management, as companies want to reduce the amount of time it takes to deliver products to the market. In business, lead time minimization is normally preferred.
Lead time is broken into several components: preprocessing, processing and post processing. Preprocessing involves determining resource requirements and initiating the steps required to fill an order. Processing involves the actual manufacturing or creation of the order. Post processing involves delivery of products to the market. Companies look at each component and compare it against benchmarks to determine where slowdowns are occurring.
Investment dictionary. Academic. 2012.
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lead time — ➔ time * * * lead time UK US noun [C] COMMERCE ► the time it takes after receiving an order to deliver the goods or services to a customer: »The result of this new approach is a shorter lead time and lower costs … Financial and business terms
lead time — lead times 1) N COUNT Lead time is the time between the original design or idea for a particular product and its actual production. [BUSINESS] They aim to cut production lead times to under 18 months. 2) N COUNT Lead time is the period of time… … English dictionary
lead-time — (lēdʹtīm ) n. The time between the initial stage of a project or policy and the appearance of results: a long lead time in oil production because of the need for new exploration and drilling. * * * … Universalium
lead time — [ lid ,taım ] noun count or uncount the time between planning something and starting to do it: Local firms learned how to reduce lead time by 75 95% while still reducing costs … Usage of the words and phrases in modern English
lead time — [ˈli:d taım] n [U] the time that it takes to make or produce something … Dictionary of contemporary English
lead time — lead′ time [[t]lid[/t]] n. the period of time between the initial phase of a process and the emergence of results, as between the planning and completed manufacture of a product • Etymology: 1940–45, amer … From formal English to slang
lead time — Time between the initiation of a new project and its delivery date. ► “Given such uncertainties as the Middle East and the long lead time needed to develop major oil fields, rising prices seem inevitable.” (Fortune, Oct. 30, 1995, p. 88) … American business jargon
lead time — [lēd] n. Manufacturing the period of time between the decision to make a product and the beginning of actual production … English World dictionary
Lead time — A lead time is the period of time between the initiation of any process of production and the completion of that process. Thus the lead time for ordering a new car from a manufacturer may be anywhere from 2 weeks to 6 months. In industry, lead… … Wikipedia
lead time — noun the time interval between the initiation and the completion of a production process the lead times for many publications can vary tremendously planning is an area where lead time can be reduced • Hypernyms: ↑time interval, ↑interval * * *… … Useful english dictionary
lead time — Ops [m1]1. in inventory control, the time between placing an order and its arrival on site. Lead time differs from delivery time in that it also includes the time required to place an order and the time it takes to inspect the goods and receive… … The ultimate business dictionary