Challenges in reducing total lead time

 19/02/2020
Miscellaneous
By Dr. Alin Posteucă

From the perspective of Total Lead Time, any company mainly wants to have a system that:

  • is able to comply with the delivery terms assumed;
  • continuously maintains an optimal stock level;
  • continuously reduces total lead time (especially in the production area – it’s handy);
  • reduces the number of operations and non-value added activities;
  • reduces transfer times;
  • reduces set-up times and
  • masters the required capacity of the bottleneck (takt time).

But in reality I often encounter “opportunities” with effects on manufacturing costs increase:

  • material lead time is not synchronized with production lead time;
  • production planning does not always take into account the actual capacity of the bottleneck;
  • tdelivery time to customers is not synchronized with production delivery time;
  • supplies from suppliers have significant fluctuations;
  • suppliers’ deliveries create a chronic state of excess material inflows;
  • payment of stocks from suppliers is made before the use/sale of stocks;
  • not knowing the WIP structure according to the current production mix.

So what do you think, what are the biggest challenges in reducing total lead time and mastering bottleneck?

Source: Alin Posteucă on LinkedIn

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About

Strategic productivity and profitability consultant and researcher, Alin Posteucă, Ph.D., Ph.D. is transforming the way companies approach their strategic transformation. With over 20 years of management consulting experience, Posteucă has created effective concepts such as Strategic Kaizen, Takt Profit, KAIZENshiro Budgets and Costing. His research on production flow has led to innovative breakthroughs in strategic and operational productivity improvement.

Posteucă's investigation into typologies of losses and waste has identified feasible improvements that can achieve the ideal state of production flow, known as Synchronous Profitable Operations (SPO). His Takt Profit model allows the optimization of production planning, transforming profit per minute into objectives for strategic improvements achieved through Strategic Kaizen projects.

Posteucă's research has led to increased effectiveness in strategic improvements and has set the stage for future productivity in the world of manufacturing technology. He is laureate of the Romanian Academy of the "Traian Vuia" Prize, the highest scientific prize in Romania.