Lead Time Reduction

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 the process To understand how non-value added activities drive cost in a process To learn that reducing Lead Time contributes directly to improving Q,S,T, P and Customer Satisfaction.

Time = Money

Lead Time Reduction

Eliminates waste because the more time it takes to complete a product or service:

Lead Time Definition

Definition: Total time required to complete one unit of a product or service.
Lead Time

Start

Finish

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

Lead Time Reduction

Graphic 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 steps with o NVA steps). 9. Graph ideal process and work to achieve 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 time required

Lead Time Reduction Process

Step 1: Identify the product or service you provide, i.e:
Finished product Administrative service Repair Parts ordering Sub-assembly Procedure Therapy Consultation

Identify the Beginning of the Process

Step 1 (Continued):
Identify the beginning of the process Identify the end of the process

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

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

Lead Time Reduction Process

Step 4: Identify steps as Value-Added (VA) or NonValue-Added (NVA):

Value-Added (VA)
Any activity that the customer is willing to pay for. Why the customer is here, such as:
Treatments Assembly

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 the customer does not perceive as adding value, even though it may be necessary because of current process limitations, such as:
Rework Inspection Waits Moves

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)

Summarize Information
Step 5: Summarize information:
Total the number of VA steps and NVA steps Total the time required for VA steps and NVA steps Determine % of value-added work: % VA = VA Time VA time + NVA time x 100%

Analyze and eliminate VA and NVA Activity

Step 6: Step 7: Analyze and eliminate NVA activity Analyze and eliminate VA activity
Reduce Eliminate Combine

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

Lead Time Reduction Process

Step 8:
Graph the improved process
Using results of steps 6 & 7

Step 9: Identify the ideal process

Step 10: Graph the ideal process

Ideal process is one with no NVA activity and minimized VA steps and time

Lead Time Reduction

Step 11: Repeat the process

END
Notes