There are two types of lead times for produced items; Production lead time and Lead time. The Production lead time is used for planning purposes, and the Lead time is used for sales order availability check. The lead times can either be defined manually in the Item file on item or warehouse level, or calculated using a lead time proposal. The lead times are calculated using information from the operations and work centres.
Production lead time
The production lead time indicates the number of days it takes to manufacture a parent item. This is used in MRP and Pull Planning for the creation of order proposals. The requirement date minus production lead time will be the start date, i.e. the date when manufacturing should start.
The production lead time is based on the bill of routing for the parent item:
Note: Operation times are reported in hours and the production lead time is defined in days. Refer to the formulas below for information about the calculation.
Depending on the Workload planning type set up in the work centre, the production lead time is calculated in the following way:
- Workload planning type = 1 (Run/labour time + internal set-up)
- Workload planning type = 2 (Machine time + internal set-up)
Note: The values for Normal capacity, Number of shifts, Number of machines, Efficiency factor, Man factor and Resources per job are defined in the work centre.
Lead time
The lead time indicates the number of days it takes to manufacture an item, and it is used for sales order availability check. The lead time can be calculated in two different ways:
Calculate one level with critical components
The lead time is calculated for one operation level. The sales availability check looks at the operation as well as the components defined as critical (availability check 1 or 2).
Calculate all levels/Total lead time
The lead time will be calculated for all operation levels. The calculated total lead time is based on the production lead time for the structure leg (sub-assembly) with the highest lead time plus the production lead time for the highest level (parent item).
How the lead time is calculated is defined when the lead time proposal is created. See Create a lead time proposal for produced items for more information.
Enquiries and printouts
- Work with item lead times, Included sub-assembly items
- Item lead time proposal printout