Have you ever placed an order and eagerly waited for it to arrive, only to be disappointed when it takes longer than expected? In today’s fast-paced manufacturing industry, efficiency and timely delivery are essential for exceeding customer expectations. In this blog post, we will explore a simple yet effective formula to calculate lead time—a crucial metric in manufacturing and supply chain management. Join us as we delve into this one simple formula. 

 Wondering About Lead Times? Click Here to Learn Why They Matter

What is Lead Time and What are the Components Involved?

Lead time is the total duration between the request of a product or service and its delivery to the customer. Calculating lead time is important for businesses to effectively manage their operations, optimize resource allocation, and meet customer expectations. 

The basic formula to calculate lead time is widely used across industries: 

Lead Time (LT) = Order Delivery Date – Order Request Date 

Lead time can be further broken down into various components, depending on the complexity of the production process and supply chain. These components may include: 

  • Processing Time: The duration required to review and validate the order such as order entry and documentation. 
  • Manufacturing Time: The time spent on production, which involves making raw materials or components into finished goods. This component may vary based on factors like product complexity and resource availability. 
  • Waiting Time: The period during which the order is idle or waiting for the next stage in the production process. This can occur when there is equipment downtime or material shortages. 
  • Inspection Time: The time allocated for quality control checks to make sure that the products meet specified standards and requirements. 
  • Transportation Time: The duration it takes for the finished products to be shipped from the manufacturing facility to the customer’s location.
Two engineers discuss a project and calculate lead times

Manufacturers calculate lead time to optimize their production and delivery process to customers.

How Breiner’s One Simple Formula Minimizes Lead Times

Breiner Innovative, the trusted seal, gasket, and custom part supplier, has developed a powerful yet simple formula that embodies the just-in-time (JIT) approach, allowing them to not only reduce lead times but also to exceed customer expectations. This approach focuses on delivering products or services exactly when they are needed, eliminating wasteful practices and optimizing efficiency throughout the supply chain. 

Breiner’s formula for minimizing lead times is all about synchronizing every step of the production and delivery process to match customer demand. Instead of relying on large inventories and long lead times, we take a personalized approach, working closely with you to grasp your unique requirements and timelines.

Ready to take your manufacturing to the next level? Contact us now! 

Curious about our capabilities? Learn what we do here at Breiner Innovative. From our equipment to materials types this capability statement covers it all. Download our flyer!