Lead-times, reduction

Typically, fixing errors and redesign account for around 30% of product development time, as shown in Figure 5.3, and improving this position provides an opportunity for lead time reduction. This means doing more work early in the process when (Parker, 1997) ... 

Figure 5.3 Lead time reduction opportunities in product development (Parker, 1997)...

Similarly, quick response programs in the apparel industry focused on decreasing apparel delivery lead time. The competitive benefit of lead-time reduction has been estimated to be equivalent to the profit associated with a 40% demand increase. In short, time can generate money for the supply chain. 

Agarwal et al. (2007) review the literature on supply chain agility, touching some of the components of DDSC like lead time reduction, market sensitiveness, new product introduction, and propose to apply Interpretive Structural Modeling (ISM) to show the interrelationship of different 15 variables to supply chain agility. 

Hill, A.V., I.S. Khosla. 1992. Models for Optimal Lead Time Reduction. Production and Operations Management 1(2), 185-197. 

Hopp, W., M. Spearman, D. Woodruff. 1990. Practical Strategies for Lead Time Reduction. Manufacturing Review 3, 78-84. 

Unpredictability increases the risk of obsolescence and lost sales and can be addressed via information enrichment (Mason-Jones and Towill 1997), consultative forecasting (Fisher 1997) and lead time reduction (Watson 1994). 

Lead-time reduction Lead-time reduction reduces the amount of safety stock estimated to be carried. 

Advance Scheduling and Planning Manage volatility Available to promise Distribution planning Balanced costs Lead time reduction Integrated work processing... 

A 64 percent lead-time reduction for forecast development... 

De Treville, S., Shapiro, R.D. and Hameri, A.-P. 2004. From supply chain to demand chain the role of lead time reduction in improving demand chain performance. Journal of Operations Management, 21, 613-627. 

Whilst clearly zero lead times are hardly likely to exist in the real world, the target for any organisation should be to reduce lead times, at every stage in the logistics pipeline, to as close to zero as possible. In so many cases it is possible to find considerable opportunity for total lead-time reduction, often through some very simple changes in procedure. 

In setting up the supplier association, priority was given to suppliers who provided parts for final assembly of the telephone, especially those who made colour-related and mechanical parts which would have maximum impact on lead-time reduction. Seven tier 1 suppliers and one tier 2 supplier agreed to take part, and the network is shown in Figure 9.5. 

Quick response is the set of actions a supply chain takes to reduce the replenishment lead time. Supply chain managers are able to improve their forecast accuracy as lead times decrease, which allows them to better match supply with demand and increase supply chain profitability. We have discussed the benefits of lead time reduction for regularly stocked itans such as detergent in Chapter 12 (see Example 12-6). We now focus on the benefits of lead time reduction for seasonal items. 

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