Lead time describes the period between the start of an activity or requirement and the actual start or completion of implementation. It includes all necessary steps such as planning, preparation, and organization.
Lead time has a direct impact on process planning and adherence to deadlines. The better the lead time is known, the more reliably processes can be controlled. It is particularly important for orders, production processes, or project launches. It also plays a major role in event management and construction planning.
In practice, a distinction is made between internal and external lead time. Internal lead time refers to internal company processes such as production or approvals. External lead time concerns factors such as delivery times from service providers or manufacturers. Both components must be considered in planning to avoid bottlenecks.
Typical terms used in the context of lead time are: Just-in-Time, ETA (Estimated Time of Arrival), Scheduling and Travel time
