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Lead Time Vs Turn Around Time

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This topic contains 13 replies, has 8 voices, and was last updated by  Susan McDermott 2 years, 5 months ago.

Viewing 14 posts - 1 through 14 (of 14 total)
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  • September 27, 2012 at 2:55 am #54186

    karthik

    Hi,
    What’s the difference between Lead time & Turn Aroun Time

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    September 27, 2012 at 10:19 pm #194103

    Prabhu V
    Participant

    Karthik,

    Please find the definition for both terms,

    Lead time: The amount of time, defined by the supplier/service provider, that is required to meet a customer request or demand. Lead-time is generally considered as the time between the Customer’s request initiation to Customer’s request fulfillment.

    Turn around time: This time is in order to get a job done and deliver the output , once the job is submitted for processing center according to the customer request.

    In nutshell, TAT generally takes about the time requirement to meet a customer demand internal to the processing center and Lead time considering both internal and as well as external to the processing center.

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    October 1, 2012 at 4:31 am #194113

    karthik

    Hi Prabhu,
    Thanks for your Input

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    October 10, 2012 at 3:02 pm #194197

    ivan
    Participant

    Lead Time=NVA=Non-Value Added Time
    Cycle-Time=Touch Time or VA time
    In any process LT is usually where you might want to concentrate your “leaning” efforts since it is usually much higher than “touch time”.

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    October 11, 2012 at 1:39 am #194198

    Hari VS
    Participant

    As per my undestanding, Lead time starts when the request for the work is received and ends once the entire work is completed. But the Cycle time starts only when work starts and ends when it is completed.
    “Lead Time=Total time from start to finish”. This may also include waiting time between the sub processes, if there is any.

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    September 15, 2013 at 7:17 am #195924

    sameer

    lead time means the time start of process request ,to end of transit time.closure of availblity.
    TAT mens turn around time of job request start to closure.
    sameer

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    January 30, 2014 at 5:27 am #196595

    ViVEK SHROUTY
    Participant

    nice inputs.

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    January 30, 2014 at 7:55 am #196597

    john

    lmao

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    February 7, 2014 at 7:36 am #196625

    Brendan Kelly
    Participant

    Some use a Lead Time definition to not include the transport time. Only when the order is ready for dispatch.

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    July 21, 2016 at 11:34 pm #199920

    Constantin Alexandru

    Hi,
    I want to discuss about this situation in manufacturing company.
    We received an order from a companny for a reparation.
    In this case :
    TAT for an operation= difference between the time when start the opertation(when operator take the part )and the time when the operator finish operation.
    Lead time=the time when received the part in our company and the time when finish activity (the part is ready for delivery)

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    July 22, 2016 at 8:36 am #199922

    Chris Seider
    ★★★★★★★★★★
    Participant

    Technically, you should include time to get raw materials to make the product IF you don’t keep stock.

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    July 22, 2016 at 9:39 am #199923

    R L K

    These are two different things. In simple words, time taken to meet demand of customer for any material or services is termed as Lead time. While, time taken to complete the project from initiation to finish is termed as turn around time.

    Any company, would like to minimize both, so as to improve on productivity.
    There are ways of doing it and that depend on type of projects.

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    November 23, 2016 at 4:12 pm #200247

    randy sanchez
    Participant

    you know guys in our industry, Lead time is from day of request up to the day of deliver.
    TAT-just like this situation (ex.)this would apply in maintenance department, the time start upon pick up the item just(for repair until the delivery of item or done repair).

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    November 28, 2016 at 2:08 pm #200262

    Susan McDermott
    Participant

    Karthik,
    I have always used Little’s Law for lead time (LT=WOH or WIP/average TP). This is a good representation of process performance and closer to what the customer can expect to feel. In my experience, turnaround time is typically measured from the start of work until delivery in cumulative units of time. Sometimes the start point will be receipt of order, but it has always included all the waiting time. Cycle time is the actually working time to get the task done (which also includes some non-value-add time). TAT and CT can be influenced by a variety of factors including the nature of the work or the order. That’s why I like Little’s Law as a measure of lead time and a better process indicator. It is more likely to be normally distributed and in control if the process handles a variety of items.
    Best,
    Susan

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