Skip to Content Former Member

### lead time

dear gurus,

how will we calculate lead time in sap?please through some light

-guna

##### Add comment
10|10000 characters needed characters exceeded

### 1 Answer

• Best Answer Former Member
Aug 18, 2007 at 07:32 AM

Hi Guna

Lead time usually refers to the time to either produce a product internally or procure externally (then it is time taken from when we order till the time we receive it in our inventory and we maintain this in the material master MRP-2 view as planned delivery time and this along with teh GR Procesing time will be used by MRP to calculate the time taken to procure the material externally)

in case of in-house produced materials lead time is calculated usually as follows

for it we need to maintain formulas and efficiency % in the capacity and scheduling views of the work centers and based on the standard value key parameters (for ex if we use the standard as = SAP1, it has only 3 setup, labor and machine times) we enter here

now when we use this work center in a operation in a routing, we need to enter the values for these labor, setp and machine times,

now based on the the base quantity we enter,

so when we run MRP and select the option in parameters as = Scheduling option = 2 for lead times

MRP will calculate the Times which is sum of labor, setup and machine time and formulas, system will propose time or dates for start and finish of planned orders and this time is the leaed-times

if helpful Please REWARD YOUR POINTS

thanks

Chakri

##### Add comment
10|10000 characters needed characters exceeded
• Former Member

Hi Guna,

Follwing the Mr.Chakri`s good explainsation, i am giving some details about lead time.

1.you can calculate the lead time by running the MRP with scheduling parameter = 2, here system will do lead time scheduling, You can check the result of the lead time scheduling in the planned order.

2. when creating prodution order also lead time scheduling is carried out.

lead time indiactes the time required to produce material. to calculate lead time system use following ,

1. standard values of the operation from the routing

2. floats values from scheduling margin Key (if u defined)

lead time calculation:

The system normally executes the lead time scheduling with backwards scheduling and starts from the determined order finish date

1.system calculates the production finish date by subtracting the float after produdtion days (defined in scheduling margin key) from order finish date.

2.then it calculates the prodution start date by subtracting sum of operation values from order finish date.

3.from the production start date, the order start date is calculated by subtracting float before production values from order production start date.

During the lead time scheduling the exact production dates are calculated.

reward the points if u found helpful

regards

pradeep