Example of Manufacturing Lead Time (MLT)
A certain part is generated in a batch size of 100 units. The batch should be routed through five operations to complete the processing of the parts. Average setup time is 3 hr/operation, & average operation time is equal to 6 min (0.1 hr). Average nonoperational time because of handling, delays, inspections, etc., is 7 hours for each operation. Calculate how many days it will take to complete the batch, supposing the plant runs one 8-hr shift/day.
The manufacturing lead time is determined
MLT = 5 (3 + 100 × 0.1 + 7) = 100 hours
At 8 hr/day, this amounts to 100/8 = 12.5 days.