Lead Time is the total time from order to delivery.

Lead Time is the total time from order to delivery.

• A. Time to complete one piece
• B. Total time from order to delivery
• C. Time to schedule production
• D. Total time pieces spend in a queue

Answer: (B)

Lead time is the total time from order to delivery. It includes every step the product experiences after the customer places the order—processing the order, scheduling and setup, manufacturing or assembly, any waiting or queue time, inspection, packaging, transportation, and final delivery. Because it captures the entire duration the customer experiences, it is the best choice. The time to complete one piece is cycle time, which measures just the manufacturing time for a single unit. Scheduling time is the planning phase for when to start work, and queue time is only the waiting period in line. Each of these is a part of lead time, but none alone describes the full order-to-delivery duration.

Lead time is the total time from order to delivery. It includes every step the product experiences after the customer places the order—processing the order, scheduling and setup, manufacturing or assembly, any waiting or queue time, inspection, packaging, transportation, and final delivery. Because it captures the entire duration the customer experiences, it is the best choice.

The time to complete one piece is cycle time, which measures just the manufacturing time for a single unit. Scheduling time is the planning phase for when to start work, and queue time is only the waiting period in line. Each of these is a part of lead time, but none alone describes the full order-to-delivery duration.