Challenges in reducing total lead time

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

Dr. Alin Posteucă is a consultant in productivity and profitability, CEO of Exegens® and the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts. His major research areas include manufacturing policy deployment, manufacturing cost improvement and visible profitability of operational excellence by improving productivity. His recent research includes the impact of Industry 4.0 on planning and developing synchronous profitable operations and on information systems of cost and budget in order to substantially improve the operational unit costs.

He has been actively involved in various industrial consulting and training projects for more than 20 years, delivering training/ workshop programs in Productivity, Innovation, Business Transformation and Leadership for over 5,000 participants.

He has a Ph.D. in Industrial Engineering and a Ph.D. in Managerial Accounting. He has an MBA Degree and a BA Degree in Accounting and Computer Science and he is certified Public Accountant in Romania. He has published in various research journals and presented papers at numerous conferences and congresses regarding Productivity, Profitability and Industrial Engineering.

Dr. Alin Posteucă is the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts, published in four books at Productivity Press – Routledge/ CRC, New York (USA).