Which statement correctly differentiates lead time and cycle time in a sustainment process?

Which statement correctly differentiates lead time and cycle time in a sustainment process?

• A. Lead time is the time from order to receipt; cycle time is the time to complete a process from order to delivery, including processing.
• B. Lead time and cycle time are identical concepts.
• C. Lead time is the time from delivery to invoicing; cycle time is time from order to ship.
• D. Lead time measures only supplier readiness; cycle time measures only product assembly.

Answer: (A)

Lead time measures how long from the moment you place an order with a supplier until the materials actually arrive and are in hand. It captures external delays like supplier production, shipping, and receiving time. Cycle time, in this framing, is the total time to complete a process from start to finish, including the processing steps inside the workflow, so it covers the entire path from ordering to delivery but with emphasis on all the steps required to move the item through the process, including processing. This distinction matters because planning and improvement targets differ: reducing lead time focuses on supplier and logistics efficiency, while reducing cycle time targets internal processing and handling that occur between order initiation and final delivery. The statement that aligns with this is that lead time is from order to receipt, and cycle time is the full duration from order to delivery, including processing. The other options blur or misplace these boundaries, such as treating both as identical, or defining lead time in terms of delivery-to-invoicing or focusing only on supplier readiness or product assembly.

Lead time measures how long from the moment you place an order with a supplier until the materials actually arrive and are in hand. It captures external delays like supplier production, shipping, and receiving time. Cycle time, in this framing, is the total time to complete a process from start to finish, including the processing steps inside the workflow, so it covers the entire path from ordering to delivery but with emphasis on all the steps required to move the item through the process, including processing.

This distinction matters because planning and improvement targets differ: reducing lead time focuses on supplier and logistics efficiency, while reducing cycle time targets internal processing and handling that occur between order initiation and final delivery. The statement that aligns with this is that lead time is from order to receipt, and cycle time is the full duration from order to delivery, including processing. The other options blur or misplace these boundaries, such as treating both as identical, or defining lead time in terms of delivery-to-invoicing or focusing only on supplier readiness or product assembly.