// ROBOTICS AND SMART FACTORIES TERM

Lead Time

The total time it takes from the moment a customer places an order until the finished product is delivered to them.

Lead Time — illustration from Wikipedia
Image via Wikipedia

TECHNICAL DEFINITION

Lead time is the duration spanning from the initiation of a process (e.g., order placement, material request) to its completion (e.g., product delivery, material receipt), encompassing design, production, and delivery phases, and is a critical metric for operational efficiency and customer satisfaction.

BACKGROUND

Lean manufacturing is a management system built on three principles: produce only what is needed, when it is needed; correct abnormalities as soon as they occur; and empower workers to improve the process themselves.

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SYNONYMS & ALIASES

  • Cycle time
  • delivery time
  • order-to-delivery time
  • throughput time

USAGE NOTE

Reducing lead time is a key goal in Lean manufacturing to improve responsiveness and customer satisfaction.

DEVELOPERS

Organizations developing technology related to Lead Time.

  • SAP

    SAP provides Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) solutions that offer real-time visibility, advanced planning, and production scheduling capabilities crucial for optimizing and reducing manufacturing lead times.

  • Siemens Digital Industries Software

    Siemens offers a comprehensive portfolio of software, including digital twin technology, Manufacturing Operations Management (MOM), and Advanced Planning and Scheduling (APS) solutions, enabling manufacturers to simulate, optimize, and streamline production processes to shorten lead times.

  • Dassault Systèmes

    Through its 3DEXPERIENCE platform, Dassault Systèmes provides virtual twin experiences for design, simulation, and manufacturing planning, along with supply chain planning and operations management solutions that help optimize production flows and reduce lead times.

  • Kinaxis

    Kinaxis specializes in concurrent planning, providing an AI-powered platform that enables end-to-end supply chain visibility and rapid scenario planning, allowing companies to react quickly to changes and significantly reduce lead times across their operations.

  • Blue Yonder

    Blue Yonder offers AI-driven supply chain planning and execution solutions, including demand forecasting, inventory optimization, and logistics management, which are critical for improving efficiency and minimizing lead times in manufacturing and distribution.

  • Rockwell Automation

    Rockwell Automation delivers industrial automation and digital transformation solutions, including Manufacturing Execution Systems (MES) and analytics software, to optimize production processes, improve operational efficiency, and reduce manufacturing lead times.

  • Oracle

    Oracle's cloud-based ERP and Supply Chain Management (SCM) solutions provide advanced planning, manufacturing execution, and supply chain visibility tools that enable businesses to streamline operations and effectively manage and reduce lead times.

  • Honeywell

    Honeywell develops industrial automation and control technologies, along with supply chain solutions including warehouse automation and software, to enhance operational efficiency, optimize production, and contribute to reduced lead times in manufacturing environments.

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