The Lead Time is the duration that elapses from the beginning of a process until completion. It includes any waiting time within that process.
A considerable lead time can impact customer satisfaction and competitive advantage, so we strive to reduce it. So, the objective in reducing the lead time is to reveal or observe leverages such as waiting time, non-right first time, non-value-added activities, and other waste within the process.
When observing lead time, the scope you consider is crucial.
The example above illustrates a typical delivery process. The end-to-end lead time, as represented, is the duration from the “Start Date” to the “End Date”. However, you may also track the implementation lead time for specific improvement purposes.
Lead Time and Cycle Time are fundamentally different metrics. The choice between them depends on the improvement leverages you want to target.