lead time

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 them into the appropriate store. Inventory levels can afford to be lower and orders smaller when purchasing lead times are short.
2. in new product development and manufacturing, the time required to develop a product from concept to market delivery. Lead time increases as a result of the poor sequencing of dependent activities, the lack of availability of resources, poor quality in the component parts, and poor plant layout. The technique of concurrent engineering focuses on the entire concept-to-customer process with the goal of reducing lead time. Companies can gain a competitive advantage by achieving a lead time reduction and so getting products to market faster.
Also known as cycle time

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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 — UK [ˈliːd ˌtaɪm] / US [ˈlɪd ˌtaɪm] noun [countable/uncountable] Word forms lead time : singular lead time plural lead times the time between planning something and starting to do it Local firms learned how to reduce lead time by 75–95% while… …   English dictionary

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