Oracle Manufacturing uses Item, routing, operation, and resource information to compute fixed, variable, and processing lead times for manufactured items.Item and routing information is updated as part of the computation. Lead times are not calculated for purchased items even if they have a routing.

When computing manufacturing lead times, primary routings are automatically updated with lead time and offset percents. As with the item lead time attributes, you can also manually assign these values.

Lead Time Percent
Oracle Manufacturing stores the lead time percent for each routing operation as the percent of manufacturing (processing) lead time required for previous operations, calculated from the start of a job to the start of an operation.

For example, if an item's manufacturing lead time is two days and the primary routing has two operations with the same duration (1 day), the first operation's lead time percent is zero and the second operation's lead time percent is 50%.

Offset Percent
Oracle Manufacturing stores the offset percent for each resource on a routing operation as the percent of manufacturing (processing) lead time required for previous operations, calculated from the start of the job to the start time of a resource at an operation.

For example, both operations in the previous example for lead time percent require one day (eight hours) to perform. If you have two different resources assigned to the second operation, and each resource requires four hours to complete their task, the offset percent is 50% for the first resource and 75% for the second resource.

Lead Time Lot Size
Processing lead time is computed as the time required to complete 1 lead time lot size of an item (the time required to complete the second scheduled job). Bills of Material determines an item's lead time lot size from two item master fields: standard lot size and lead time lot size.

For items that you plan and cost by the same lot size, you can specify a value only for the standard lot size. Bills of Material then computes manufacturing lead time using the standard lot size quantity.

For items that you plan with one lot size and cost with a different lot size, you can enter a lead time lot size. Bills of Material then calculates manufacturing lead time using this value (rather than the standard lot size). If an item does not have a value for the standard or lead time lot size, Bills of Material uses a quantity of one to compute manufacturing lead times.

Fixed and Variable Lead Times
You can automatically compute processing, fixed, and variable lead times for manufactured items, whether they are produced using discrete jobs or repetitive schedules.

A value of zero is assigned to the fixed, variable, and processing lead times of a manufactured item that does not have a routing and is not assigned to a production line