What is the effect of producing in batches on lead-time?

Producing in batches typically increases lead-time due to several factors inherent to the batch production process. When items are produced in batches, there are often delays associated with transitions between different batches, including setup times, processing times, and potentially waiting times for materials or resources to become available.

Additionally, when a product is produced in a batch, the whole batch must be completed before any of the items can be delivered, which inherently lengthens the time it takes for the first item to be delivered to the customer. Therefore, even if the production runs are efficient, the wait for the entire batch to conclude can significantly affect overall lead-time.

It is also noteworthy that while batch production may allow for efficiencies in certain scenarios, these efficiencies do not typically outweigh the delays they introduce to the overall delivery schedule. This contrasts with continuous flow production, which can minimize lead-times by reducing waiting periods and allowing for quicker turnarounds on products. Consequently, the impact of producing in batches is to extend lead-time rather than decrease it or keep it stable.