2.5 Lead Time Management

Lead time is not a single number; it is a composite metric comprising manufacturing, transit, and processing durations. Underestimating lead time is the primary cause of missed customer deliveries. This chapter standardizes the calculation and maintenance of lead time data within the ERP system.

2.5.1 The Composite Lead Time 

Total Lead Time (TLT) = Manufacturer LT + Transit LT + Inspection LT.

• Manufacturer LT: The time from PO placement to goods leaving the supplier dock.
• Transit LT: Freight duration (e.g., Ocean = 40 days, Air = 3 days).
• Inspection LT: The mandatory "Dock-to-Stock" interval (24-48 hours) for counting, verifying, and shelving material. Ignoring this creates a "virtual availability" error.

2.5.2 The "Unconfirm" Risk Protocol 

When a supplier "de-commits" or pushes out a confirmed date:

1. Immediate Impact Analysis: Run a "Where-Used" report to identify affected Work Orders.
2. Customer Notification: Alert the Program Manager within 4 hours if the slip impacts the commit date.
3. ERP Update: The system date must reflect the new reality, not the hoped-for date, to force accurate shortage reporting.

Final Checklist