What Is Production Lead Time?

Production lead time is the period between an agreed production trigger and completion of goods ready for the next step.

Production lead time is the period between an agreed production trigger and completion of goods ready for the next step. The trigger may be order confirmation, deposit, material availability or approved artwork.

How Production Lead Time works in a sourcing process

Define the start and finish events in the quotation and purchase order. Separate material procurement, queue, processing, inspection and packing where delays matter.

Production Lead Time: what the sourcing record should show
AreaWhat to record
DecisionDefine the start and finish events in the quotation and purchase order. Separate material procurement, queue, processing, inspection and packing where delays matter.
EvidenceTrack the confirmed trigger date, promised completion, actual completion, dependencies and approved changes.
Watch pointProduction lead time excludes international transit unless the parties explicitly include it. Avoid using it as a synonym for total delivery time.

What buyers should verify

Track the confirmed trigger date, promised completion, actual completion, dependencies and approved changes.

Production lead time excludes international transit unless the parties explicitly include it. Avoid using it as a synonym for total delivery time.

Related sourcing records

strategic sourcing, supplier prequalification, landed cost.