What is lead time in SAP PP - Production Planning and Control?

SAP Term: lead time

• Component: PP

• Component Name: Production Planning and Control

• Description: The period, at operation level, between the earliest start and the latest finish of an operation and at order level the period between the order start date and the order finish date. The lead time of an operation is made up of queue time, execution time, and wait time. The lead time of an order is made up of execution times, interoperation times, and order floats before and after production.

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• Key Concepts: 
  Lead time is the amount of time it takes to complete a process or task from start to finish. In SAP Production Planning and Control (PP), lead time is used to calculate the amount of time needed to produce a product or service. It is also used to determine when a product or service should be available for delivery. 
  
  How to use it: 
  In SAP PP, lead time is calculated by taking into account the amount of time needed for each step in the production process. This includes the time needed for raw materials to be delivered, the time needed for production, and the time needed for delivery. Lead times can be adjusted based on customer demand and other factors. 
  
  Tips & Tricks: 
  It is important to accurately calculate lead times in order to ensure that products and services are delivered on time. It is also important to monitor lead times regularly in order to identify any potential delays or problems that may arise during production. 
  
  Related Information: 
  Lead times are closely related to other concepts such as capacity planning, scheduling, and inventory management. Understanding how these concepts interact with each other can help ensure that production processes are efficient and effective.