Manufacturing lead time is the amount of time between the placement of an order and the receipt of the order by the customer. It includes a number of different components of the manufacturing process and can be predicted by a manufacturer with established systems in place for handling orders. When customers call a manufacturer to make an order, the manufacturer should provide a lead time quote so that the customer knows when to expect the product. Such quotes may also be listed in catalogs to provide customers with an estimate of how long it will take to receive the items they order.
The first step in manufacturing lead time is the placement of the order, followed by processing of the order. This can represent a sizable delay if a company has numerous orders to process or limited personnel for inputting and scheduling orders. Once recorded in the system, the order moves into preparation time, with personnel scheduling the actual process of manufacturing the item.
