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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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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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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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

Lead Time Reduction

Documents

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