This document discusses applying Lean and Quality Risk Management (QRM) thinking to significantly reduce production lead times. It provides examples of companies that reduced lead times by 50-90% through these approaches. The document advocates organizing for speed by focusing on time rather than efficiency, using cross-trained cell-based teams with ownership of entire processes. It also discusses using variability as a strategic advantage rather than a burden, and making time the primary performance indicator and decision driver. The goal is to deliver customer orders faster than competitors can even make a quote.

1. Competing on Time
-
World Wide
HAN Lean-QRM Center
Vincent Wiegel

2. 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

3. 2 year research and development project at the
‘GrafiMedia’ industry
With SIA RAAK and 10 industry partners
Applying Lean and QRM thinking

4. 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?!

5. 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!

6. Response time spiral
Long lead times
High WIP
and Inventory
Hot jobs,
Expediting
Safety Time
inserted
Inaccuracy of
Planning
Regular jobs
delayed

7. 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

8. 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

9. 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

10. Manufacturing Critical-path Time

11. Easy to understand
• Where would you start?
• Where are your dependencies?
• Where is your critical path?

12. 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

13. 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

14. 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)

15. Thank you for your attention
To find out more about Lean & QRM
http://www.han.nl/lean
http://www.slideshare.net/
Succesvol LeanIt’s about time