Managing the lead time frontier

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  • Publicado : 29 de enero de 2012
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Introduction
This chapter takes a strategic view of time on logistics performance. Compressing time cycles in the supply chain give internal and external benefits:
External: Faster services,outrunning competition
Internal: Shorter cash-to-cash cycles, lowering inventories.
The chapter focuses on how time based solutions link with competitive strategy.
Key Issues for the chapter (6):
1.Role of time in competitive advantage
2. P:D ratios and differences
3. Time-based process mapping
4. Managing timeliness in the logistics pipeline
5. A method for implementing time-based practices6. When, where and how

1. Role of time in competitive advantage
- Competing on time = Timely response to consumer needs (neither early nor late).
- Decreasing lead time no necessarily means thatquality is reduced or costs are increased.
Complexity and Variety:
- We can lose control as system complexity increases. System complexity increases when variety increases.
- External Variety =Choice offered to the end customer.
- Internal Variety = External variety converted into their internal requirements in the supply chain.
- So, variety will only be included when value is added.
-Processes need to be redesigned to be simpler.
Time-based initiatives
- Rewards of attacking time: time reduction, cost reduction, improvement of quality.
- Time-based initiatives add value by:
-Increase responsiveness to customer needs: Clear Concept
- Manage increased variety: Shorter lead times = reduce delays = capacity (time)to supply variety
- Increase product innovation: ClearConcept
- Improved return on new products: New products give revenues faster. Break-even time achieved more quickly.
- Reducing risk by relying less in forecasts: Clear Concept.
- Reduction ofworking, plant and equipment capital, development and quality costs.
- NOT ALL PRODUCTS/SERVICES require speed. Is important to identify which does.
2. P:D ratios and differences
- Time is easy to...
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