Reduce Process Time to Reduce Cash-to-Cash Cyle Time
To reduce the number of days to make and ship the product from the time the order is received; implement DBR[1] Scheduling which results in a mean reduction of lead-times of 70%[2]. For the example we started yesterday, let’s say the 4 week lead-time would shrink to 9 days. That gives us a new cash-to-cash cycle time of 115 days (134 days less 28 days lead, plus the new 9 days lead).
[1] We actually implement S-DBR, Simplified DBR (also known as DBR II) in most cases. You can learn more about S-DBR in the book Manufacturing at Warp Speed by Eli Schragenheim.
[2] The World of the Theory of Constraints, Mabin and Balderstone
(c)Copyright 2007, Dr Lisa, Inc. All rights reserved.
Showing posts with label DBR II. Show all posts
Showing posts with label DBR II. Show all posts
Tuesday, March 20, 2007
Drum Buffer Rope / Simplified Drum Buffer Rope
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