
46 • e Lean CFO: Architect of the Lean Management System
On-time delivery is an excellent measurement because paying attention
to the reasons why you ship late reveals a lot of valuable information about
how to improve value stream ow.
Lead time: Lead time is the total time it takes demand to ow through a
process. In operations, lead time starts at receipt of a customer order and
ends with delivery of the product to the customer. From a Lean viewpoint,
lead time is the sum of total cycle time and waste time. Total cycle time is
the value-added time it takes to make a product. Lead time is an excellent
performance measure because it requires ...