It's About Time: The Competitive Advantage of Quick Response Manufacturing

233 Pages·2010·2.12 MB·English

by  Rajan Suri

Disclaimer: This eBook does not include ancillary media that was packaged with the printed
version of the book.
It’s About Time
The Competitive Advantage of
Quick Response Manufacturing

It’s About Time
The Competitive Advantage of
Quick Response Manufacturing
R ajan Suri
Productivity Press
Taylor & Francis Group
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New York, NY 10016
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To Nicole
v

Contents
Contents of Bonus CD ........................................................................xiii
Acknowledgments ................................................................................xv
Introduction ........................................................................................xvii
Chapter 1 The Power of Time .............................................................1
Defining QRM..............................................................................2
Challenges to Reducing Lead Time ...........................................4
QRM Focus Is Different from a Traditional Approach ..........8
Manufacturing Critical-path Time (MCT) ............................12
Keep Data-Gathering Efforts Simple ............................12
Measure in Calendar Time and Properly
Quantify the Critical Path.................................13
An MCT Example ...........................................................14
Impact of MCT on Your Organization’s
Performance ......................................................18
Enterprise-Wide Waste Due to Long MCT ................20
Impact of QRM—Standard Cost Prediction versus
Actual Results ..................................................................23
Accounting Systems Miss the Connection ..................25
Encouraging Time-Based Thinking throughout
the Organization ...............................................28
Rethinking the “On-Time Delivery” Metric .........................30
Dysfunctional Impact of the On-Time Delivery
Metric ..................................................................31
The QRM Approach to Improving Delivery
Performance .......................................................33
Squeezing Out Time Leads to Numerous Improvements ....33
Chapter 2 Organizational Structure for Quick Response:
QRM Cells, Teamwork, and Ownership .......................35
Response Time Spirals ..............................................................36
The Spiral for a Make-to-Stock Business .....................36
The Spiral for a Make-to-Order Business ....................39
vii
viii  •  Contents
Roots of the Response Time Spirals .............................41
Four Structural Changes for Quick Response .......................47
Key 1: Organize into QRM Cells. .................................48
Understanding Focused Target Market
Segment (FTMS) through an
Example ..............................................48
Defining a QRM Cell .........................................50
Deciding Which Resources to Include in
a QRM Cell: An Example ..................52
QRM Cells Are More Flexible than
Traditional Cells .................................53
Key 2: Team Ownership ................................................56
Key 3: Significant Investment in Cross-Training ........57
Key 4: Relentless Focus on MCT Reduction ..............60
Understanding the QRM Number .................60
Ensuring Proper Application of the QRM
Number ................................................63
Harnessing the Power of the Four Structural Keys ...............65
Chapter 3 Understanding and Exploiting System Dynamics
Principles .........................................................................71
The Parable of the Landing Gear .............................................73
The Pitfall of High Utilization ..................................................75
Understanding the Magnifying Effect of Utilization ..76
Clarifying “Utilization” .....................................77
Clarifying “Flow Time” .....................................78
Putting It All Together ......................................79
The Miraculous Effect of Spare Capacity ....................80
Impact of Variability .......................................................81
Three-Pronged Strategy to Reduce Flow Time ......................83
Reduce AV, the Average Variability...............................83
Practical Strategies for Reducing
Variability in Arrivals .......................84
Practical Strategies for Reducing
Variability in Job Times ....................84
Reduce M, the Magnifying Effect of Utilization .........85
Reduce TJ, the Time per Job ..........................................87