Use the Lead Time Processor form to update the fixed and a variable lead times for the manufactured items you specify. This utility calculates the lead time values using the move, queue, setup, duration, and finish times for the operations in the item's current routing and factors in the average hours in a day using the default scheduling shift or the operation's work center shift.
The Lead Time Processor replaces any lead times you may have entered on the Items form. If the routings for the items being processed are inaccurate or incomplete, the system will generate invalid lead times.
Because MRP uses lead times to plan the release dates of planned orders, it is important that you use this utility to calculate accurate lead times. MRP does not otherwise consider operation times (such as move, queue, setup, etc.), so the use of the Lead Time Processor is the only way of factoring these times into your plan for manufactured items.
About the Lead Time Processor Algorithm
Using Utilities and Activities
Defining Lead Time for APS Planning