Speed To Market: Lean Manufacturing For Job Shops

SPEED TO MARKET Second Edition SPEED TO MARKET Second Edition L E A N M A N U F A C T U R I N G F O R J O B S H O P S VINCENT BOZZONE American Management Association New York • Atlanta • Chicago • Kansas City • San Francisco • Washington, D.C. Brussels • Mexico City • Tokyo • Toronto Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www. amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Bozzone,Vincent. Speed to market : lean manufacturing for job shops / Vincent Bozzone.—2nd ed. p. cm. Includes bibliographical references and index. ISBN 0-8144-0694-7 1. Production management. 2. Production schedule. I.Title. TS155 .B615 2001 658.5—dc21 2001037308 © 1998, 2002 Vincent Bozzone. All rights reserved. First AMACOM edition published 2002. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1 In memory of Harvey W. Wallender III, friend and collaborator CONTENTS FOREWORD xiii AUTHOR’S INTRODUCTION xvii PART I. SPEED TO MARKET 1 CHAPTER 1. LEAPFROGGING LEAN 3 What is Lean Manufacturing? The Concept of Pull Leapfrogging Lean The Concept of Flow The Concept of Continuous Improvement Lean Manufacturing in Job Shops The Essential Difference vii Contents viii Speed to Market How Cutting Lead Time Improves Performance and Profitability The Mother Lode Key Points 17 CHAPTER 2. PROCESS THINKING Process Defined Job Shop Business Process Task Time vs. Chronological Time Process Analysis Key Points CHAPTER 3. CUTTING LEAD TIME SALES AND ESTIMATING IN 27 Turning RFQs around Quickly Process Analysis Applied Marketing and Sales Advertising and Promotion Key Points CHAPTER 4. CUTTING TIME PREPRODUCTION AREAS IN Order Entry Delays in Order Entry Production Planning, Engineering, Materials Management, and Purchasing A Note on Master Scheduling Purchasing and Materials Management Engineering Key Points 43 Contents CHAPTER 5. THE SHOP FLOOR ix 59 Recognizing Two Businesses under the Same Roof Organizing by Type of Demand Reducing Setup Time Process-Step Value Analysis Revising Overdetermined Quality Programs Targeting Rework Closing the Loop Explanatory Notes The Computer is Not the Solution Accelerating Cash Flow Listen to Your Customers Key Points CHAPTER 6. CONTINUOUS IMPROVEMENT 83 What Does Continuous Improvement Look Like? Using Performance Improvement Teams to Drive Continuous Improvement Establishing a Performance Improvement Team A Continuous Improvement Caveat Installing a Weekly Management Report How to Construct a Weekly Management Report Example of a Weekly Management Report Selecting the Metrics Installing the