Lead Time:

Lead time is a good measure of total performance because it takes into account what happens throughout an organization. The only way to eliminates lead time is to attack a multitude of problems such as mistakes or errors with orders, blueprints, and specifications; long setup times; frequent machine breakdowns; uncoordinated schedules; undependable suppliers; delays in inspections or repairs; poor records; long transportation times; multiple handling; and large lot sizes and inventories. Longer lead times also recommend higher expenses for storage, handling, and transportation.

Layout

Amongst the general ways to assess facility layout are in terms of utilization of space and distance travelled. The following two ratios are measures of space:

Assembly Space per Product = Total Square Footage of space in assembly area /Number of units in assembly process    

This measure correlates with the cost of space. Firms with higher assembly space per product, usually also have higher plant overhead cost (and higher production costs) than those with lower assembly space per product.