Manufacturing Lead Time

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  Manufacturing lead time is different than lead time.  Manufacturing or production lead time is the total amount of time it takes to "manufacture" or "produce" an item.

  It includes seven key elements of work that make up the manufacturing or production lead time:

1. Order preparation time.
2. Queue time.
3. Setup time.
4. Run time.
5. Move time.
6. Inspection time.
7. Put-away time.  

Keep in mind that the definition varies slightly based on your production strategy.  for example, if you are operating in an engineer to order or make to order environment your manufacturing/production lead time would be defined as the length of time from release of an order to your production process and the shipment to your customer.  This is because these items are made to an order or engineered to an order.  A make to stock environment however, is a little different.  These items are typically made for inventory.  As such, make to stock manufacturing/production lead times are defined as the length of time between the release of your order into production and the receipt into inventory.
Synonym:

• Production lead time.

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