Calculating Lead Time in Oracle ebusiness R11

1
Calculating Lead Time inOracle e-business R11
2
Agenda

• Introduce to Lead time
• Assign lead time value in Oracle e-business R11
• Schedule operations and resources

3
Introduce to lead time

• Lead time is the amount of time you required to
  complete a service, a production lot, or an order
• Example
• Servicing your car
• Produce 100 notebooks

4
Lead time for a make item

• Preprocessing lead time
• A component of total lead time that represents
  the time required to release a purchase order or
  create a job from the time you learn of the
  requirement.
• Processing lead time
• The time required to manufacture an item.
• Fixed lead time
• The portion of manufacturing lead time that is
  independent of order quantity.
• Variable lead time
• The portion of manufacturing lead time that is
  dependent on order quantity

5
Lead time for a make item

• Lead Time Lot Size (LTLS)
• The size of a lot produced during the lead time
• We use LTLS to calculate the process lead time
  for a make item

6
Calculate variable lead time
7
Lead time for a buy item

• Preprocessing lead time
• A component of total lead time that represents
  the time required to release a purchase order or
  create a job from the time you learn of the
  requirement.
• Processing lead time
• The time required to buy an item.
• Post processing lead time
• The time to make a purchased item available in
  inventory from the time you receive it.

8
Lead time offsetting

• Lead time offsetting is a process to calculate
  the start and end date of a service/lot/order by
  using the lead time and the shop calendar.