Competing in the Marketplace

1 Kaizen Training Competing in the Marketplace “What factors are important to the customer?” John Deere - Supplier Development John Deere Supplier Development Kaizen Training 2 TIME: The single best indicator of competitiveness Set-up or Change-over Time Manufacturing Cycle Time Product Development Time Customer Lead Time / Delivery Time Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers. John Deere Supplier Development Kaizen Training 3 Shrinking Lead Times Order Lead Times Manufacturing Lead Times Delivery Lead Times Order Lead Times Manufacturing Lead Times Delivery Lead Times Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection. As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer` John Deere Supplier Development Kaizen Training 4 Where’s the Time in Lead Time This timeline represents an overall lead-time, with very little time spent on adding value to the product. Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% Common Improvement Efforts Concentrated on reducing VA time, with no attention given to NVA. Non-Value Added Time (NVA) VA 99% of Total Lead time 1/2 % Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial. John Deere Supplier Development Kaizen Training 5 Where’s the Time in Lead Time When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline: Greatest Opportunities are actually here! Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% NVA Time 95% of Total Lead time Great Job!! VA 5% This shows a 5X improvement in lead time John Deere Supplier Development ... - tailieumienphi.vn