This article is used to reduce lead time, which is also known as a time-based competitor.
The supply chain concept is a useful metaphor. Your business is just a link between your customer and your suppliers. Your company's best quality, the features you want and the best price at your best price determine your competitive position. Reduction of lead time also releases cash, increases capacity and enables its customers to respond more accurately to customers
For the purposes of this Article, the lead time is determined by the time the customer orders the order until the product is accepted supplier.
The lead time in the food business is as instant as above; the customer selects the shelf inventory and places it in the basket. If one step ahead in the supply chain to the wholesaler, the grocery store probably ordered the item 1-3 days earlier. If the product was fresh, the store probably ordered it in the morning. Three to six hours of delivery time is required. Continuing with fresh products, we can step back into the supply chain. The farmer had to bury the seed, feed the crop, cover it, and transport it. The processing time can be from six to ten weeks or longer depending on the variables of nature. In the example above, the lead time is significantly increased as the production is far from the consumer. Unlike the producer of the product, the farmer does not have a real way of reducing the nature of the time for organic products to mature.
However, the manufacturer has almost unlimited compromises to produce their products. Take the full value of TQM (Quality Control) from the typical process. To do this, use a Ishikawa or a fish weighing table to identify the factors that may influence the lead time for a typical product.
Picture of the fish roller has ribs that identify the most important questions and find more detailed details on each major issue. After you've created the chart, it's usually a multifunctional team to start investigating how these factors can be controlled or eliminated to reduce lead times. The ribs include the following areas: Entry into Order, Engineering Planning, Schedule, Purchasing, Materials, Production, Quality, Transportation, Claims; all factors that contribute to long driving time at a high level.
Another approach is the involvement of all activities and their completion. The list begins when the customer orders the order and ends with the customer who is able to use the product. (Remember that it does not end with the delivery or shipping of the product as the customer can not use defective or damaged products.)
Now that the list is finished (also known as the Value Stream Map), what activities you are willing to pay for customer. After reducing or eliminating items that the customer does not want to pay, they seek to reduce the time required to complete the remaining tasks. Redesigning the product is often the result of the process. It eliminates waste generated during the manufacturing process as well as material waste. The material inventory of some manufacturers may include all the inputs and outputs used to produce the product. This may include the amount of electricity, heat or other products used in the transformation process. This may include items previously classified as waste, such as scrap metal that has not been used in the final product. This may include the amount of byproducts produced, such as the amount of CO2 generated.
"Less than 5 percent of the total time needed to produce and deliver the product to your customer is spent on the actual process, 95 percent is not time-consuming, this wasted time offers a timely competitive edge." Time-based competition Joseph D. Blackburn
The third option is benchmarking for lead time evaluation. Benchmarking is the organization's comparison with its competitors or the best in the classroom in different areas. For example, the company takes two weeks to process the order from the customer to the factory. His best runner takes a week. The industry's best time one day. By comparing or assessing key business areas, you can begin to focus on where you need to focus on the most effort to reduce lead time.
Some examples of the impact of these techniques and the competitive advantage of the company .
So far we have discussed the lead time and how to reduce it with three different techniques. Yet some of the thoughts can be said that the techniques presented are: Fishbone Diagrams, Value Stream Mapping and Benchmarking in different aspects of the same world class philosophy. Full Quality Management or TQM is a comprehensive process for viewing processes. TQM is a process that can be described in every business. And each process must have a feedback loop to improve its performance. The feedback loop means, in a technical sense, that there is an input (measurable), process (measurable), output (measurable), and a control loop from the output back to the input and process to configure the parameters to provide the product with the client's requirements / 19659002] Deming Wheel of Plan, Do, Check, and Law can of course be used with hard data, meaning measurable problems. The first problem is to recognize that there is a problem. In this case, we look at lead time. The benchmarking process compares our business with industry and other industries to the separation of best practices and performance standards. Once the performance level has been established, you can determine our relative position. If you decide that the lead time is a problem, you can use multiple tools. The fish bone diagram is a way of organizing data collection that focuses on isolating the problem. Once identified, other tools can be used, such as process capacity and statistical process control.
Benchmarking is, of course, realized through the World Class competitors. You may not always call this name, but businesses always compare performance data. The telecoms ISO9001: 2000 TL-9000 version needs a common benchmarking database for service providers and suppliers alike. It may be as simple as selling per employee, or how many rows can be collected in a daily warehouse. How do we measure ourselves against the best? Francis Tucker et al. HBR APICS Letters to CIRM Reprints
Benchmarking Process Steps:
- Identification of comparator companies
- Determining data collection method and collecting data
- Determining the current performance gap
- Future performance levels
- Communicating benchmarks and accepting receipt
- Creating Operational Goals
- Developing an Action Plan
- Implementing Special Measures and Tracking Progress
- Revaluation Benchmarks
Benchmarking: Searching Industry Best Practices That Lead to ASQ, Quality Press [Superior Performance]
Alcoa's benchmarked areas such as administrative, manufacturing and service features. The process allows them to identify new ideas and opportunities. There are several excellent articles on benchmarking in Quality Progress Magazine. The above data from benchmarking is derived from Karen Bemoswski 1/91 "Benchmarking Bandwagon"
We have now created development areas. Thereafter, many tools can be used to isolate special problem areas
. "We first discover the need for . Here's a useful procedure: Each process has been subjected to Pareto analysis, then a halve of a coarse (pareto-bone) on a finer, more specific level, and again one Repeat this process until the solution to the problem shows itself or requires measurements, perhaps on the SPC charts. " The Quality Concept: Still Developing, Richard Schoenberger, CIRM Customer and Product News
The Pareto Diagram is simply a vertical histogram. A multifunctional team is the best way to isolate alternatives by this method. Now that we have isolated the problem, we can take steps to permanently reduce or eliminate it.
Reducing lead time with TQM
In the final section, benchmarking pattern to create world-class performance indicators for deployment and other business processes. Now, the Lead Time Reduction series ends with two full quality management approaches to reduce and track lead time performance: Value Stream Mapping and Statistical Process Control.
One of the ways Value Stream Mapping is to re-design a product or process to reduce or eliminate operations. The value analysis is defined as "… the effort to analyze the functional requirements of systems, equipment, equipment, processes and kits to achieve performance, reliability, quality and maintainability at the lowest cost." Purchasing World, feb. & Lt; 89 & gt;
Value flow crawl, known as Value Engineering, has been used for years in space exploration and defense industries. It has proven useful in the original design examinations and the analysis of ongoing processes. John Deere reduced the design cycle of the new line in 3 years in the first year. By mapping value flows, John Deere has increased its flexibility and offers 25,000 configurations from the original 160. "Value analysis helped older Deere's communications lines with design, manufacturing, procurement, and other support features." Purchasing June & 88
Textron Lycoming has also benefited from value analysis with external suppliers. "More than $ 37 million have been saved since the implementation of the program", Purchasing, June 19, I count on revenue with reduced money; although it can be stated that this is not always the case.
Now that we recognized the problem, we isolated some solutions and reduced the product lead time, how can we ensure that the new lead time remains as short as possible in the future?
Statistical Process Control (SPC) is a technique that can be applied to any business or manufacturing process. Effective because it highlights variability. Variability is one of the main causes of waste and delays. By using control panels, SPC eliminates time-consuming refilling and debris.
The SPC diagrams visibly warned the operator that a process exceeds the allowed variability; the control drifts. The process can now be corrected to avoid unacceptable output.
"The Ingersoll-Rand Energair (IR) plant at Davidson, North Carolina, reduced manufacturing losses by 76% over 10 months using the SPC." Quality, April & lt; 91
Using SPC is a serious issue. Companies have found that many employees have a basic mathematical and reading problem. "If a business wants its staff to take over their jobs, we need to invest in the required education and training when Plumley Companies tried to teach employees to the SPC, discovered that more than 50% were unable to study mathematics, Industry Week, April 1991, all before Six Sigma
US suppliers have a major advantage over ordered or assembled products but because of the more efficient ordering, manufacturing and logistics methods, local suppliers' benefits can only be eliminated. World-class suppliers acknowledge that lead time is not the only customer's expectation, only Quality, Price, Shipping and Customer dissatisfied to Understand Your Business
A brief summary of time is the process of reducing lead times. Processes can be measured and verified. Benchmarking can indicate the potential for development or help you set up your goal. Mapping the value stream can reduce the steps. Employees should be provided with the skills needed to implement process development programs. From scratch it seems scary, but now you become a World Class competitor.
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