Abstract: Lead time is a critical measure of a supply chain's
performance. It impacts both the customer satisfactions as well as the
total cost of inventory. This paper presents the result of a study on the
analysis of the customer order lead-time for a multinational company.
In the study, the lead time was divided into three stages respectively:
order entry, order fulfillment, and order delivery. A sample of size 2,425 order lines was extracted from the
company's records to use for this study. The sample data entails
information regarding customer orders from the time of order entry
until order delivery. Data regarding the lead time of each stage for
different orders were also provided. Summary statistics on lead time
data reveals that about 30% of the orders were delivered later than the
scheduled due date. The result of the multiple linear regression
analysis technique revealed that component type, logistics parameter,
order size and the customer type have significant impacts on lead
time. Data analysis on the stages of lead time indicates that stage 2
consumed over 50% of the lead time. Pareto analysis was made to
study the reasons for the customer order delay in each stage.
Recommendation was given to resolve the problem.
Abstract: Lean manufacturing is a production philosophy made
popular by Toyota Motor Corporation (TMC). It is globally known as
the Toyota Production System (TPS) and has the ultimate aim of
reducing cost by thoroughly eliminating wastes or muda. TPS
embraces the Just-in-time (JIT) manufacturing; achieving cost
reduction through lead time reduction. JIT manufacturing can be
achieved by implementing Pull system in the production.
Furthermore, TPS aims to improve productivity and creating
continuous flow in the production by arranging the machines and
processes in cellular configurations. This is called as Cellular
Manufacturing Systems (CMS). This paper studies on integrating the
CMS with the Pull system to establish a Big Island-Pull system
production for High Mix Low Volume (HMLV) products in an
automotive component industry. The paper will use the build-in JIT
system steps adapted from TMC to create the Pull system production
and also create a shojinka line which, according to takt time, has the
flexibility to adapt to demand changes simply by adding and taking
out manpower. This will lead to optimization in production.