CHAPTER 9Reducing Lead Time and Non-Value-Add Cost

Purpose of these tools

• To eliminate constraints in a process

– ensure that the process can meet customer demand

• To reduce the lead time and cost of a process

– eliminate non-value-add cost and waste to improve process efficiency and profitability

Deciding which tool to use

Review the Basic concepts and definitions of Lean (p. 199). Then:

• Determine where and how time is used in your process:

– Identify process steps as value-add or non-value-add (in the eyes of the customer), see Chapter 3, p. 49

– Calculate the Process Lead Time (also known as process cycle time) for the process), p. 199

– Determine the desired average completion rate (customer demand rate, or takt rate), p. 200)

– Calculate ...

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