what is your lead time? Why so
Lead time consists of a number
of factors such as current backlog,
supplier lead time, work-in-progress,
process capability and capacity, and
distance to the customer.
Some of those factors are
within your control. For instance,
I know business owners who aren’t
comfortable unless they have a six
to eight weeks backlog of orders,
their customers are going to have
to “take a number” and wait their
turn even if they might not be too
happy about that.
If your supplier is quoting you
more than two weeks, you need
to seek out a different supplier.
Work-in-progress is entirely
in your control and it directly
relates to your internal lead time.
Typical internal lead time
is from 10 to 15 days. The total
labor content of anything you
make is probably not more
than four hours, so why does
an item take 10 to 15 days to
work through your processes?
Because there is more work-in-progress than necessary to create
Each of the above factors
represent opportunities for
profitability, reduced throughput
time, and enhanced market share.
If you doubt those assertions,
contact Dustin Hunter, CEO of
Hunter Trim and Cabinets in
Ft Worth, Texas. His email is
com. His phone number is 940-
841-0025. It will be your most
productive time this year.
At HTC internal lead time
is measured in minutes and
hours rather than days and
weeks. Typically, the sheet-stock
supplier delivers the day before
production and the material is
arranged on the pallet in the
order specified for introduction
into production. Orders that
enter production one day are