Plain-language questions
Ask for production lead time per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Inventory, purchasing and production
Production lead time: formula and example.
Production lead time is the time between starting a production order and the product being finished. It covers not just processing time but also waiting, moving and inspection between steps. A shorter lead time makes you more responsive and reduces work in progress.
Production lead time formula
Sum of (completion time − start time) across finished production orders ÷ number of finished production orders
Worked example
In May 2026 Acme Groothandel completed three production orders for a private-label product. From start to finish they took 20, 28 and 36 hours. The average production lead time is (20 + 28 + 36) ÷ 3 = 28 hours.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A shorter lead time means faster delivery and less capital tied up in work in progress. Compare lead time with pure processing time: the difference is waiting, and that is usually where the biggest gains are. Compare by product or product family with your own earlier periods and look at the spread too.
Pitfalls with production lead time
- Starting the clock at the first operation rather than at order release, so upfront waiting is missed.
- Comparing averages across very different products.
- Leaving out orders still in progress, even though those are the slowest.
SQL & DAX
Calculating production lead time in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', finished_at) AS month,
COUNT(*) AS production_orders,
ROUND(AVG(EXTRACT(epoch FROM finished_at - started_at) / 3600)::numeric, 1) AS avg_lead_time_hours,
ROUND(AVG(run_minutes / 60.0)::numeric, 1) AS avg_run_hours,
ROUND((PERCENTILE_CONT(0.9) WITHIN GROUP (
ORDER BY EXTRACT(epoch FROM finished_at - started_at) / 3600))::numeric, 1) AS p90_lead_time_hours
FROM production_orders
WHERE finished_at IS NOT NULL
GROUP BY 1
ORDER BY 1;Finished Orders = CALCULATE(COUNTROWS(Production), NOT ISBLANK(Production[FinishedAt]))
Production Lead Time (hours) = DIVIDE(SUMX(FILTER(Production, NOT ISBLANK(Production[FinishedAt])), DATEDIFF(Production[StartedAt], Production[FinishedAt], MINUTE)) / 60, [Finished Orders])In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate production lead time?
For each finished production order, subtract the start time from the completion time and take the average. Decide what counts as the start: releasing the order or the first operation. Apply that definition consistently.
What is the difference between lead time and processing time?
Processing time is the time someone or something is actually working on the product. Lead time is the total time from start to finish, including waiting and moving. The share of processing time in lead time is often called flow efficiency.
How do you reduce production lead time?
Start by finding where orders wait, because that is usually most of the lead time. Smaller batches, less work in progress at once and a bottleneck that never stands idle often help. Measure after each change whether lead time and its spread really fall.
Further reading
- KPI libraryInventory and purchasing KPIs: formulasThese KPIs show how much cash is tied up in stock, how reliable suppliers are and how efficiently you produce. The data comes from your ERP, WMS and production records.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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