Break a total lead time into internal, supplier, transit, and receiving components and interpret the result.
A purchased motor took 21 days from identified need to usable stock. The order spent 3 days waiting for internal approval, 2 days waiting for PO release, 9 days in supplier processing, 4 days in transit, and 3 days in receiving and put-away. Where is the biggest controllable improvement opportunity? Total lead time is the sum of internal release time, supplier processing time, transit time, and receiving time. The common trap is blaming the supplier for the whole 21 days and missing the five internal days that happen before the supplier even gets the order. Step 1 Internal pre-release time…
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