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How can lead time be decreased of actual process time spent is not reduced? Consider product...

How can lead time be decreased of actual process time spent is not reduced? Consider product definition lead time (the time needed to design a product and its associated processes). Assuming actual design and process engineering time is fixed, is it possible to make a design production ready sooner?

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Answer #1

Lead time is the time required to manufacture the goods. It starts at the time the order is received and ends when the product has been delivered to the customer. Lead time comprises of not only the time required to manufacture i.e. the process time, but also several wastes - namely eight. These wastes are categorized as Transportation, Inventory, Motion, Waiting, Over-production, Over-processing, Defects and Skills. By eliminating or minimizing these wastes, the lead time can be increased.

Actual design and process engineering time being fixed, it is still possible to make a design production ready sooner, i.e. reduce the lead time in such a case. This can be achieved by eliminating or reducing the non-value adding activities i.e. wastes as mentioned earlier. For example, ensuring the material is arrived in time, eliminating the waiting time. Or, ensuring there are no errors, reducing defects and rework. Further, proper scheduling activity will ensure manpower and machinery are properly utilized.

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