Lead Time is a key manufacturing indicator that measures the time required for a product to go from order to delivery. A long Lead Time causes production delays, additional costs, and lower customer satisfaction. Conversely, reducing Lead Time helps optimize production planning, improve overall equipment effectiveness, and boost a company’s competitiveness.
In this article, we’ll explore how to calculate and reduce Lead Time through better machine tool management, optimized workforce planning, and process automation.
Lead Time refers to the total duration between the ordering of a product and its final delivery. It includes several stages of the production process and can be influenced by factors such as raw material availability, cycle times, changeover times, and machine efficiency.
There are several types of Lead Time in manufacturing:
Manufacturing Lead Time: Time required to turn raw materials into a finished product.
Procurement Lead Time: Time from ordering a material to receiving it.
Total Lead Time: The full period from process start to final delivery.
The formula depends on the production process, but it can typically be represented as:
For example, if:
Cycle time = 2 hours
Waiting time = 4 hours
Transportation time = 1 hour
Changeover time = 3 hours
Then:
A short Lead Time reflects better reactivity and streamlined production, while a long Lead Time may indicate inefficiencies in production planning.
1. Changeover Time
Changeovers are a common source of delay. Each transition between runs takes time and can impact overall Lead Time. Applying the SMED (Single-Minute Exchange of Die) method helps standardize and automate steps to reduce delays.
2. Poor Production Planning
Ineffective production planning results in machine tool inactivity, increasing Lead Time. Live planning software helps synchronize processes and minimize disruptions.
3. Waiting Time and Inventory Management
Excessive waiting times due to delays in raw material supply or poorly managed inventory can greatly increase Lead Time. A real-time inventory management system helps prevent shortages and maintain production flow.
4. Equipment Inefficiency
Underused or frequently failing machine tools reduce productivity and increase Lead Time. Machine monitoring software helps track overall equipment effectiveness and optimize performance.
1. Automate Machine Monitoring
Machine monitoring software provides real-time performance data, making it easier to identify delays and implement corrective actions.
2. Optimize Production Planning
Production planning software helps allocate resources and optimize cycle times based on actual machine and workforce capacity.
3. Improve Inventory and Supplier Management
Long Lead Times often stem from supply delays. Reducing excess inventory and improving raw material management ensures smooth production flow.
4. Reduce Changeover Times
The SMED method simplifies and automates series changes, reducing downtime and speeding up production.
5. Increase Equipment Efficiency
CNC program monitoring allows for machine parameter adjustments to reduce cycle times and improve production rates.
A mechanical components manufacturer was experiencing excessive Lead Time, impacting delivery deadlines. After implementing production planning and machine monitoring software, they were able to:
Reduce Lead Time by 30% by optimizing changeovers and automating processes
Minimize production interruptions through better cycle time and CNC program management
Improve workforce utilization by adjusting task planning in real time
These improvements enabled the company to boost productivity while meeting tighter delivery timelines.
Lead Time is a crucial metric for evaluating the efficiency of a production process. Reducing it requires better production planning, optimized machine tool management, and automation.
Using machine monitoring software, optimized CNC programs, and strategies like the SMED method accelerates production and improves manufacturing competitiveness.
By applying these strategies, manufacturers can not only shorten Lead Time but also improve their Overall Equipment Effectiveness (OEE), enhance workforce planning, and ensure better resource management.