In the context of production planning, what does "turnaround time" refer to?

Turnaround time in the context of production planning refers to the comprehensive duration from the moment a production order is received until the finished product is shipped to the customer. This measurement includes not just the time taken for actual production but also encompasses all related processes, including setup times, breaks, potential delays, and any quality checks that might occur before shipment.

By defining turnaround time this way, organizations in production can better understand the efficiency of their operations. It can lead to improved planning and strategies to minimize delays and streamline the workflow, ultimately enhancing customer satisfaction through timely deliveries. The broader definition of turnaround time highlights its critical role in the overall production cycle rather than limiting it to just the physical production phase or post-production quality checks. Thus, it reflects a more holistic view of production efficiency and customer service.