The total amount of time it takes for a product or service to go through the entire system, from order entry/receipt, through delivery. This includes any delays due to demand exceeding availability, processing delays, movement, queues, etc.
See also Lead TimePERMALINK
An example of both Visual Management and the Pull System, where two bins or containers are used to trigger a reorder of parts or materials. Each bin contains enough parts to last during the delivery lead time. Once one bin is empty it is time to reorder the two-bin quantity.
See also KanbanPERMALINK
Type 1 Error
TYPE 1 Errors are those where a relationship is assumed where none existed. Production Risk: Rejecting a good part.PERMALINK
Type 2 Error
TYPE 2 Errors are those where it is assumed no relationship exists, when in fact it does.PERMALINK