Calculate total lead time and identify operational bottlenecks. Free calculator for operations managers, manufacturers, and SMB owners.
Calculate total lead time and identify operational bottlenecks. Free calculator for operations managers, manufacturers, and SMB owners.
Generated: 1/13/2026, 7:15:41 AM | AskSMB.io
Time to receive and process the order
Time to manufacture or prepare the product
Time to deliver the product to the customer
Unit of time used
Total Lead Time
0 days
Sum of all process stages
🟢 Fast Lead Time
Lead time is the total elapsed time from when a customer places an order until they receive the finished product or service. It encompasses every stage of your fulfillment process: receiving and processing the order, producing or preparing the product, and delivering it to the customer. Lead time is one of the most important operational metrics because it directly impacts customer satisfaction, competitive positioning, and business efficiency. Shorter lead times generally result in happier customers, reduced inventory holding costs, and improved cash flow.
Lead time is critical for multiple business reasons. It affects customer satisfaction—customers prefer faster delivery and will often choose suppliers with shorter lead times. It impacts inventory management—longer lead times require higher safety stock levels, tying up capital. Lead time influences pricing power—businesses that can deliver faster may command premium prices. It affects competitiveness —in many industries, lead time is a key differentiator. Longer lead times also increase the risk of order cancellations, changes, and demand fluctuations. By measuring and optimizing lead time, businesses can improve customer loyalty, reduce costs, and gain competitive advantage.
Lead time is the customer-facing metric measuring total time from order to delivery. It includes waiting time, queue time, and all process stages. Cycle time is an internal metric measuring active production time—how long it takes to complete one unit once production starts. Lead time = Order placement → Customer delivery. Cycle time = Production start → Production finish. The gap between lead time and cycle time represents non-value-adding time (waiting, processing, shipping). For example, a product might have a 2-day cycle time but 10-day lead time, indicating 8 days of waiting and transit.