What Goes Into a Lead-Time?

By weldadmin | November 30, 2015

By Brent Nussbaum, Vice President of Manufacturing and Engineering

I would like to describe to you what the words “lead-time” mean here at Miller Weldmaster and what variables go into calculating a lead-time.

All too often, the words “lead-time” mean how long it will take to build a specific machine. This is true; however, the build hours are only a small part of what determines a successfully executed delivery time.

We understand that delivery time is an important part off your buying decision, as such we provide you an approximate lead-time upfront in the process. This lead-time will then be confirmed once we follow the below process.

Lead-time Calculation Variables

For automated equipment, Miller Weldmaster needs the following three items to start the process:

1. Signed Purchase Order
2. Signed Terms and Conditions
3. Down payment

Once these items are received, we move onto the customer technical review (CTR). During the CTR, our technical team reviews the quote with the customer to make sure all parties are on the same page regarding design and build.

Next, we conduct an internal technical review (ITR). During the ITR, our internal engineering and manufacturing teammates meet to review all of the information from the quote and CTR. We look at our backlog and Lean Manufacturing Hurdle dates to provide the customer with an Automated Equipment Timeline which includes your due date.

One of the final steps prior to manufacturing is to get parts from outside partners. As we do not have 100 percent manufacturing capabilities in-house, we must lean on our vendors to help with the production of certain parts. These vendors also have lead-times, we typically see between a 4-8 week lead-time on parts.

Finally, while we recognize there is cost associated with testing materials, we believe it to be a vital and necessary part of the build process. Throughout the build process, it is important that we receive ample testing material, and that it arrives when requested per the Automated Equipment Timeline. Should we miss that date or the requested amount of material, it will directly impact delivery time of the machine.

Lead-time Calculation

1 week for CTR
+
1 week for ITR
+
2 weeks engineering lead-time
+
4 weeks supplier lead-time
=
8 weeks before we start working on the machine
+
build time
+
testing and debug time
=
Lead-time