THROUGHPUT TIME MANAGEMENT

Throughput times are linked to synchronization of flows, and volume considerations for each step • In many production environments we find long order lead times, linked to long throughput times. Sometimes the time driver resides in complicated order clarifications, in other situations it is linked to long waiting times of intermediate products after each production step. • In any case, when looking with a fresh perspective on the chain, and asking some questions on current practices, the first opportunities for improvement get visible. • But - the impediments are in the detail… only based on a thorough understanding of time drivers, lot size drivers, and exceptions and escalations which destroy the planned sequences, solutions can be identified. • Our portfolio of analytics, and even more on solutions, is very wide in this area. But, as an easy entry, we focus on two key processes for an overview, to get a first understanding, and then select the appropriate detailed approach for targeted “deep dives” to identify unnecessary time drivers, and define solutions for improvement. • In most cases, a clever segmentation approach is a key enabler for significantly reducing average throughput times. But, of course, a lot of the other supply chain performance enablers play a vital role in accelerating the flow of goods, and the reduction of throughput times, like planning excellence, integrated order management, or creating real-time transparency. • Significant throughput time reductions are also typically driven by integrative operational improvements, but a main influencer is that for each company, a typical area exists at a given point of time on which to focus the supply chain performance improvement efforts.