Competing on Time -

World Wide

HAN Lean-QRM Center

Vincent Wiegel

The HAN Lean QRM Center

An initiative of HAN University together with the University Groningen and industry

Working closely together with the QRM Center at the Wisconsin University, Madison – with support from Dr. Rajan Suri

Supported by founding fathers and sponsors from industry

A board with representatives from industry and academia

Dr. Vincent Wiegel – chair & prof of Lean / World Class performance research group

2 year research and development project at the ‘GrafiMedia’ industry

With SIA RAAK and 10 industry partners

Applying Lean and QRM thinking

What if…

Your offers would reach your customer

24 hours after the enquiry?

Your lead times including design &

engineering would be 4 rather 50 days?

What would be the implication for your

business?!

Potential: 50-90% faster

• National Oilwell Vargo: from 75 to 4 days – In addition: 99% defect free & part costs -30%

• BoschScharnieren: from 3-5 days to 1 day for quotations

• Bakeware producer: production leadtimes from 55 days to 27 days

• Coil producer: from 47 hours to 1 hour (including engineering!)

• All inluding customer specific engineering/design/…

Imagine: Delivering the order before your competitor even has made a quotation!

Response time spiral

Long lead times

High WIP

and Inventory

Hot jobs,

Expediting

Safety Time

inserted

Inaccuracy of

Planning

Regular jobs

delayed

From burden to advantage

Using variability such that it does not

interfere the production flow

Type

variability

Strategy

Rush order, replanning

Material shortages

Wrong specs

Many product-options

Customer specific

Fast adaptation

Exploit

Reduce

Dysfunctional Strategic

Copyright © 2010 R. Suri – used with permission

From burden to advantage

Using variability such that it does not

interfere the production flow

Type

variability

Strategy

Exploit

Reduce

Dysfunctional Strategic

Copyright © 2010 R. Suri – used with permission

QRM:

competitive

advantage

Cost versus Time

Order entry

5 days

Design /

Component

production

12 days

Order processing /

Assembly

9 days

Shipping 9 days

3 hrs 12 hrs 2.5 hrs 2 hrs

Total Lead time: 35 days

Time-Based (QRM) Focus

Processing

time

Lead time

Cost-Based Focus

Copyright © 2010 R. Suri – used with permission

Manufacturing Critical-path Time

Easy to understand

• Where would you start?

• Where are your dependencies?

• Where is your critical path?

4 key components

• Lead time results from complex interaction

between men, materials and machines

QRM for

• Material planning

• Production (POLCA)

• Supply chain

• Office

•Cells vs functions

•Multi-skilled vs specialists

•Ownership at cells

•Time instead of efficiency as performance indicator

• Lead time as driving factor for decisions

• But what is lead time

• It’s impact on the business

I Focus on Time

II Organisation

III System dynamics

IV Company

wide strategy

Traditioneel QRM

1.Organisation Functional Cells

2.Management Top-Down Team ownership

3.Team members Specialized Cross trained

4.Mindset Efficiency Focus on MCT

Utilization reduction

Team runs whole process

from start to finish

Teams organise work

themselves from planning to

ordering

Ability and know-how to

execute multiple tasks

within cell

Focus is first on time. Only

later on focus on quality and

cost.

Organising for speed

Focus on opportunity / threat

Define the focus of the QRM project:

target market segment

Select processes using criteria

• Preferably long lead times, high

levels of inventories/WIP

• Large problems with quality or

delivery (frequent rush jobs)

• Significant added value

• Complex flow through the business

(order passes through many

functional departments)

Thank you for your attention

To find out more about Lean & QRM

http://www.han.nl/lean

http://www.slideshare.net/

Succesvol Lean It’s about time