As mentioned in the previous article, cost estimation needs all the time in the world to make sure the process gets done perfectly. When it comes to lead time reduction, you need to do the most out of the little time that you have. Two different concepts with opposite approach but let us focus on lead time analysis in this blog post.
Getting things done fast is a must in the world of manufacturing. However, it’s not just about how many products are produced in a single day but also the amount of work being put in to create each product. This is why you often hear of the term “lead time” in most manufacturing companies and why bosses are concered with “lead time analysis”. I personally label lead time and activity as calendar time and clock time respectively.
Calendar time is the amount of time spent on job order up to its completion while clock time is the amount of work to get things done. For example, if a project is required to be done in a week then your calendar time will not be affected as long as you finish the project in a week but you can improve on your clock time if you do the work faster. Only one of them can be a factor in your lead time analysis purpose.
The goal of lead time analysis is to deliver as fast as you can and make sure the gap between the request of order and delivery is the shortest time possible. Just to remind ourselves, studies have proven that the first product sample or proposal is most likely chosen 85% of the time. Sometimes it’s not about being top quality or having a reasonable price, it was simply being the first out there and this is what lead time analysis is all about.
Lead time analysis has a great impact towards any company particularly the ones in the manufacturing or retail industry. One should acknowledge that delivering fast is a clear advantage over the competition. Having no time to waste means giving value to every second the clock is ticking with the work in progress. Start working on reducing your lead time for a more effective lead time analysis.