Logistics concept
Turnaround time
Make it visible how much time an order or product actually spends in the process.
Lead time is the total time that elapses between the start and the end of a process. This can be the time between order receipt and delivery, but also between goods receipt and availability in the warehouse. Define the boundaries clearly: without the same measurement agreements, lead times cannot be properly compared.
The total lead time does not consist solely of active processing. Waiting for information, internal movements, intermediate storage, and handovers also count. An order that takes ten minutes to process but waits two days for release therefore has a much longer lead time than the processing time suggests. In addition to averages, also look at variation and outliers.
Insight into lead time helps to make realistic delivery promises and target the biggest delays effectively. In particular, reducing waiting times and better coordinating handovers can yield significant benefits. Shorter and more stable lead times limit work-in-progress and make operations more predictable.
What is Turnaround time?
Lead time is the total elapsed time between a defined start and end point of a process.
When do you use it?
Measure processing, waiting, transport, and transfer separately to identify delays.
What are the benefits?
Better planning assumptions and targeted opportunities to deliver faster and more predictably.