Chapter 7.

Conclusions
We now define T
all
as the length of time the customer is willing to wit
for product after having paid for the order. We will cal T
all
the allowable lead
time for post-payment production. For some products this may be close to
zero. However, for many products, such as prepared food, cars, and all items
that are sold through catalogues, T
all
ranges from a few weeks to two years.
For most products, the order lead time !"T# using traditional
manufacturing methods is much longer than T
all.
$s long as the !"T is
longer than T
all
it is necessary for factories and sales rooms to carry an
inventory of finished goods which the customer can obtain product within
T
all
The factory must then produce to fill this inventory .
%n &hapter ', &lassification of (oka )oke, "evels of (oka )oke,
&haracteristics of (oka )oke. $re shown.

%n &hapter *, lean manufacturing achieves the following.
+eduction in cycle timers
!n time deliveries
+eduction in work-in-process inventory
%mprovement in ,uality
%ncrease in the availability of machines
+eduction in scrap-rework
.teps of "ean /anufacturing, &omponents "ean /anufacturing, 01
%/(!+T$2T "3$2 T!!"., 45.T-%2-T%/3 /$25F$&T5+%26,
Overview of JIT, 7asic (rinciples, Universal Problem Solving Seuence, !S
!rganize the work area etc are shown
.The part type production interval8s contribution to !"T was illustrated in
&hapter 9. $ system which re,uires a long period of time to changeover
between part types is often unable to produce product of a given type cost
effectively in small batches and thus must finish the batch of the part type it
is currently manufacturing before beginning the new part type. $s a result,
there is often a substantial delay between the time an order arrives for one
part type and the time production on that part type begins.
The manufacturing lead time is made up of four components,
processing transportation, storage, and inspection. $ Time :ivision $nalysis
see &hapter 0# created from a process map see $ppendi; '# will show
which activities are value added to the process and which must be
eliminated. (rocessing is the only value-adding component of lead time, and
even processing is filled with a large ,uantity of non-value added time and
energy. The theoretical minimum manufacturing lead time is the sum of the
value added processing steps. &hapter < showed not only how to improve
the ,uality of products through implementation of (oka- yoke devices, but
also how to reduce or eliminate inspection altogether. .ince a defective part
cannot be used to fill an order, eliminating all defects is crucial to achieving
the goal of !"T= T
all
.
The final component of lead time is the shipping interval time, which
includes the shipping time, plus the time the finished goods are stored before
being shipped. This can be educed by moving production to the location of
the customer as compared with moving manufacturing facilities to regions
where the labor is cheap#, and making shipping more fre,uent.
%f we define inventory as raw materials or product that has been
purchased by the factory but paid for by the customer reducing the !"T to
T
all
will result in a complete elimination of inventory. The elimination of
inventory not only avoids the difficulties discussed in chapter *, but also
frees the factory from the cyclical behavior of linear distribution systems
chapter '#. !ne can see that a transition to "ean /anufacturing is a process
whereby the !"T is constantly reduced through continuous improvement
which eliminates the non-value added activities, and yields a manufacturing
system which only produces what the customer needs, when the customer
needs it and in the ,uantity the customer demands, all in a period of time
less than T
all
the allowable customer lead time.