The Lean CFO

112 • e Lean CFO: Architect of the Lean Management System

work centers to map the actual production process steps for each product.

e term router simply means the route that the product takes through the

production process. Like bills of material, each product that gets reported

as completed production—all nished goods and all subassemblies that

have inventory locations—must have a router.

Each step on the router must be given a run rate, which is the time it

takes to complete one unit in that process step. Determining the run rate

is very similar to determining the quantity of each part on a bill of mate-

rial. For certain work centers, especially machines, the production cycle

time is easy to determine. In other work centers, the production ...