The period of time from the date of
ordering to the date of delivery, including the
time required for the supplier to manufacture
or prepare the goods for shipment. May
include the time needed by the procurement
function to process the purchase request,
issue a solicitation, evaluate bids, and award
a contract. See also: Supplier Lead Time.
Leadership in Energy and Environmental Design (LEED) Certification
A voluntary green
building certification recognized worldwide
that provides independent, third-party
verification that a community or building is
sustainable and environmentally friendly in its
design, construction, and operation.
A predictive measurement; for
example, the percentage of people wearing
seatbelts when driving is a leading safety
indicator. See also: Lagging Indicator.
An organizational culture that is
characterized by a comprehensive effort to
identify and remove waste and thus improve
efficiency in all areas, including time,
materials, people, money, facilities, quality,
schedules, policies, customers,
transportation, and logistics.
A contract by which one party (lessor)
enters into an agreement with a second party
(lessee) for possession and use of property
(equipment) or real property (real estate) for a
specified period of time at a predetermined
cost. There are two primary lease categories:
Operating and Financial.
Lease or Buy Decision
The application of capital
budgeting principles to determine if the best
value option for an entity is to lease a
good/asset or purchase it.
Lease to Own/Purchase
The conveyance, by a
lessor to a lessee, of the right to use a
tangible asset, usually for a specified period
of time in return for rent. At a specified period
of time, the lessee may purchase the
equipment outright by paying an additional
A lease in which the
lease payments are applied, in whole or in
part, to installment payments for equity or
ownership upon completion of the agreement.