lead time reduction
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Lead Time Reduction
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Purpose of Lead Time Analysis
To document all steps in a process To quantify the time and distance of each
step in a process
To identify where value is being added to theprocess To understand how non-value added activities
drive cost in a process
To learn that reducing Lead Time contributesdirectly to improving Q,S,T, P and CustomerSatisfaction.
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Time = Money
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Lead Time Reduction
Eliminates waste because the more timeit takes to complete a product orservice:
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Lead Time Definition
Definition:
Total time required to complete one unit
of a product or service.Lead Time
Start Finish
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Every Process Has a Lead Time
Business plan development Painting process Tool and die manufacturing Stamping operation Building a house Income tax refund Servicing your car Receiving materials and building customer products Banking process Grocery shopping
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Lead Time ReductionGraphic Tool Process
The Lead Time Reduction Process:1. Identify the product/service you
provide.2. List all steps required to complete
product, from start to finish.3. Identify time now required to
complete each step.4. Identify steps that add value to
the product.5. Graph process (see graphic tool ex.
to right).6. Analyze and eliminate time needed
for non-value added (NVA) steps.7. Graph this process.
8. Identify the ideal process (ideal= minimum time for VA stepswith o NVA steps).
9. Graph ideal process and work toachieve it.
Directions for use of graphic tool: Make one box for each step Make box height roughly proportional
to time required for the step Put VA boxes on left Put NVA boxes on right Put boxes in correct order
Label boxes (name of step and timerequired
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Lead Time Reduction Process
Step 1: Identify the product or service youprovide, i.e:
Finished product Administrative service Repair Parts ordering Sub-assembly Procedure Therapy Consultation
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Identify the Beginning of the Process
Step 1 (Continued): Identify the beginning of the process
Identify the end of the process
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Walk through the Process
Step 2: Walk through the process in the natural
sequence:
First we.. then we then we
Identify individual steps
Number steps
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Take Measurements
Step 3: Take Measurements:
Identify the time required for each step: Follow one unit through the process
Review records where necessary Minimize guesstimates Wait time = average inventory
average throughput
Identify associated measures Measure distance traveled for move steps Note batch size/quantity
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Lead Time Reduction Process
Step 4:
Identify steps as Value-Added (VA) or Non-Value-Added (NVA):
Value-Added (VA) Any activity that the customer is willing to pay for.
Why the customer is here, such as: Treatments Assembly
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Lead Time Reduction Process
Step 4 (continued) Non-value-added
Any activity, operation, or use of resource that
does not conform to customer expectations. Non-value-added describes something that thecustomer does not perceive as adding value, eventhough it may be necessary because of currentprocess limitations, such as:
Rework Inspection Waits Moves
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Graph the Process
Step 5: Graph the process:
Make one box for each step Make one box height proportionate to time required for step
Position VA boxes on loft Position NVA boxes on right Put boxes in correct order Label boxes with:
Number of step
Activity of step Time required Distance traveled Quantity (if applicable)
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Summarize Information
Step 5:
Summarize information: Total the number of VA steps and NVA steps
Total the time required for VA steps and NVAsteps
Determine % of value-added work:
% VA = VA Time x 100%
VA time + NVA time
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Analyze and eliminate VA and NVAActivity
Step 6: Analyze and eliminate NVA activity
Step 7: Analyze and eliminate VA activity
Reduce
Eliminate
Combine
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Lead Time Reduction Improvement Tools
Step 6 & 7 (continued): Improvement tools: Simplification Problem-solving/prevention Machine/facility layout Multi-functional employees Standardized operations Set-up time reduction Total planned maintenance Supplier relations Visual controls Reduction of variations
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Lead Time Reduction Process
Step 8: Graph the improved process
Using results of steps 6 & 7
Step 9: Identify the ideal process
Ideal process is one with no NVA activity and
minimized VA steps and timeStep 10: Graph the ideal process
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Lead Time Reduction
Step 11:
Repeat the process
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END
Notes