Introduction

Ken Rizner, Vice President Manufacturing
Hyde Tools
Southbridge, Massachusetts

The days when price and quality were the only factors taken into account when choosing a vendor are over. Today, quality is a given if you expect to remain a player in any competitive market, and price alone can’t make up for lost opportunities long lead times create. A huge competitive advantage exists when one player can outperform the rest of the pack by delivering quality products or services at a value the customer feels is justifiable…and with the shortest lead time. The race to win orders begins when a customer’s need is discovered and ends when they have the merchandise in hand. The clock is running during every activity that occurs in between.

Having spent over 30 years in manufacturing, I can vividly remember the days when the usual excuse for a missed delivery promise was that we hadn’t been given enough lead time. Everything revolved around throwing the order out on the shop floor and hoping for the best. Unfortunately, the floor was already overburdened with more work than could possibly be processed in the expected time frame. Work in process far outweighed short term capacity. No one had the time or authority to cross over functional lines to investigate all the blockages that were preventing upstream tasks from being processed in the most expedient manner, and it was not unusual for orders to hit the floor after the promised delivery date had come and gone!

Responsibility for missed delivery promises fell on the shoulders of the expediters who were swamped with paperwork, schedules, hot lists, constant customer complaints and delivery changes. In those days we believed that lead time reductions could only come from the shop floor. Now with the advantage provided by process analysis, we know that the shop is just one link in the lead time chain, and that every link needs to be investigated and improved in order to get that product into the customers hands as quickly as possible.

Potential orders are often won or lost within a very short time period from when the need was generated. Being first to respond to a customer’s inquiry, promising the quickest delivery of the product, or responding first to a customer’s request for a quotation are very powerful tools. You stand an excellent chance of capturing an order during your first contact with a customer when you respond quickly and when you can promise…and deliver…in the shortest possible time. Each "I’ll get back to you" opens a door for a competitor to sneak past.

Maximizing the compression of lead times takes an investigation of all areas of a business. Don’t try to bite off more than you can chew. Pick an area like shop floor processing, or order entry, or routing development and clean out the wasted time. Usually fairly big chunks of lead time extenders can be discovered and eliminated rather quickly when you challenge a team to put their minds to it, but it’s the smaller continuous improvement factor that will ultimately keep you ahead of the pack. You must keep asking yourselves, "How can we do it faster?"

With all that said, what kind of lead time reduction can you expect? If you haven’t implemented any kind of lead time compression effort, I’d estimate you have a potential of cutting 75% or more off your lead time (customer contact to product delivery). Just look at the success of one-hour photo shops, or auto quick lube facilities, or fast food chains, or just-in-time manufacturers who know that time is a competitive advantage in a fast-paced world. The old adage, "time is money" has never been more true; all types of businesses are realizing this fact and responding accordingly. Today, my company can make and ship a made-to-order product in less time than it used to take us to get an order through order entry and out to the floor. This is a tremendous competitive advantage which we see reflected in our sales and profit figures…and we’re not done yet! Opportunities await any organization that’s willing to look deep enough into itself, ask the right questions, and make changes to "the way it’s always been done around here."

Speed To Market provides you with a comprehensive, practical guide for compressing your lead time, responding to customers needs more quickly, and improving the operating and financial performance of your company. I’m pleased to be able to introduce this valuable book to you.

Ken Rizner, Vice President Manufacturing
Hyde Tools
Southbridge, Massachusetts

ORDER HERE