Lead Time measures the total time span from when a request enters the system to its completion. It encompasses both active processing time and all wait times. From the customer’s perspective, Lead Time is the decisive metric because the customer experiences the entire duration, not just the actual processing time.
A simple example: a support ticket is created on Monday and resolved on Friday. The Lead Time is five days, even though the actual processing time — the Cycle Time — may have been only four hours. The rest of the time, the ticket sat in various queues. In many teams, 80 percent of Lead Time consists of waiting. This insight shifts the focus of process improvement: rather than working faster, it is more effective to reduce wait times, for instance through lower WIP Limits or faster handoffs.
Lead Time originates from Lean Manufacturing and is the central metric in Kanban for Service Level Expectations. Historical Lead Time data enables probabilistic forecasts that are more reliable than deterministic deadline commitments.
Apply methods, don't just know them. View trainings and workshops
