Lead Time is the amount of time between process initiation and completion. For the customer the lead time is the time between a confirmed customer order and its scheduled delivery based on your company’s terms and conditions.
There are several different types of Lead Time, but we will focus on the Customer Lead Time.
Customer Lead Time focuses on the amount of time taken between order confirmation and order fulfillment.
You will create a flow chart to include the following:
1. Amount of time to process customer’s order and issue order confirmation.
2. Amount of time to process payment.
3. Amount of time to manufacture/produce product.
4. Amount of time to inspect the product (quality control).
5. Amount of time to package the product.
6. Amount of time for transporting the product to customer’s home.
