The 6 Structural Components of Total Lead Time
| Component | Nature of Time | Optimization Approach |
|---|---|---|
| 1. Order Processing Time | Commercial review, credit check, drawing approval. | Digital workflow automation without paper sign-off delays. |
| 2. Procurement Lead Time | Vendor quotation, purchase order release, transit, inward GRN. | Strategic buffer stocks, automated purchase indents. |
| 3. Queue Time | WIP idling before work centers awaiting an available machine. | Finite capacity scheduling to prevent shop-floor congestion. |
| 4. Setup Time | Changing dies, fixtures, programs, and alignment. | Single-Minute Exchange of Die (SMED) techniques. |
| 5. Run / Machining Time | Active processing, stamping, cutting, and assembly. | Optimal feed rates, multi-spindle tooling, line balancing. |
| 6. Move & Inspection Time | Bay-to-bay transit, CMM dimensional inspection, packaging. | Cellular plant layouts and inline Go/No-Go inspection. |
Why Queue Time Is the Hidden Destroyer of Lead Time
In typical job shops, active run time accounts for less than 15% of total lead time; parts spend over 80% of their life idling in queue boxes waiting for subsequent machines. Compressing queue time through synchronized scheduling dramatically accelerates customer deliveries without requiring new capital machinery.
Production & Plant Control
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