Shortening the throughput time
The demands on industrial companies are generally high, and complex processes in the supply chain are normal in times of global trade.
But they also offer options: Potential for improvement in every single section of the supply chain. It is worth taking a look at throughput times: what obstacles are there here, how can the throughput time in and around your own production be shortened? Just-in-time production is almost standard – but only feasible with a suitable strategy.
Definition of lead times – why they are crucial for your company
Lead time is a key term in production planning and describes the time a product takes from order to completion. To be more precise: it includes all processes and procedures that are necessary to produce an item in production – from material provision to processing and delivery.
If you are aiming to optimize your production, a precise definition and understanding of what lead time entails is the basis for successful implementation of this plan.
Lead time, delivery time, process time
Lead time is often confused with similar terms. Delivery time, for example, describes the period from order placement to delivery to the customer, while process time only refers to the active processing time of an order within a work step.
The lead time, on the other hand, also includes waiting times, transportation times, storage and any disruptions or delays.
Throughput time therefore includes all activities along the supply chain that a product goes through: planning, material provision, processing, testing, storage, internal transport routes and delivery. The aim of an effective production lead time strategy is to shorten this time span through targeted process optimization and improved order processing.
Reduce lead time: Advantages of suitable measures
A reduced lead time offers many advantages: you increase your productivity, use your machines more flexibly, reduce costs and increase adherence to delivery dates – a clear competitive advantage. Your customers benefit from shorter delivery times and reliable order processing, which creates trust and promotes long-term business relationships.
It also reduces shortages, production waste and unnecessary stock, which not only saves money but also conserves resources – contributing to greater sustainability along the entire supply chain.
Modern software solutions help your company to achieve these goals. They provide transparency about current orders, detect disruptions at an early stage and enable data-based, agile production planning. Intelligent analyses allow you to identify bottlenecks, minimize waste and increase your ability to implement new customer requirements quickly.
In a manufacturing company, for example, digital support can reduce production throughput times by 25% – with measurable effects on costs, customer satisfaction and production efficiency.
Reducing cycle production can be part of optimized production planning. By using digital, structured instructions and mobile access to relevant documents, for example, one of our customers was able to reduce construction time by over 50% and achieve a doubling of output and quality improvements – take a look at the case study here!
Use the opportunities offered by shorter production throughput times as a strategic tool – for leaner production, optimized processes and sustainable growth.
You can also find out how the tepcon “instructor” makes a wide range of production processes more efficient in a personal consultation: We are here for you.
Challenges and risks in reducing throughput times in production planning
As clear as the advantages are – such as lower costs, better order processing and higher added value – the challenges that may arise are just as varied.
In an increasingly complex supply chain in particular, there are numerous influencing factors to consider. One of the main causes of long throughput times are long waiting times within production – for example because materials are missing, machines come to an unplanned standstill or processes do not mesh smoothly. Unclear planning, a lack of transparency regarding orders and poorly coordinated work steps also have a negative impact on production throughput times.
Unclear work instructions, a lack of information about work processes or unspecific orders within individual production steps often lead to time being lost.
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Reduction of throughput time in practice
A typical practical example: In a company, the processing time of a piece is short, but due to frequent interruptions and long distances between stations, the total time span adds up considerably. Added to this are planning bottlenecks, for example due to insufficiently coordinated production planning or a lack of standards in machine maintenance.
If this is compounded by changing personnel who are responsible for a single production step, for example, and do not have specific, up-to-date work instructions, this certainly does not help to reduce the time required.
The supply chain itself can also become a critical factor. Long transport routes, a lack of delivery reliability or inadequately coordinated processes between suppliers and in-house production make optimization difficult. This results in unnecessary stocks in the warehouse, wasted resources and rising costs.
A successful strategy for shortening production lead times therefore requires a holistic view of the processes – from ordering to product production and delivery.
This depends on the company’s ability to react flexibly to disruptions and to consistently analyze and improve its own processes.
It is also important to clearly define responsibilities: Unclear tasks not only lead to delays, but also to uncertainty among employees. Creating transparency through targeted measures not only increases efficiency, but also trust in the internal organization.
Reducing production throughput time is therefore not a sure-fire success, but a long-term project. It requires a well thought-out strategy, continuous improvements and a willingness to change – but it pays off: in the form of improved productivity, stable processes and satisfied customers.
Reducing lead times: measures and opportunities for manufacturers
Reducing throughput times is becoming increasingly important in industry.
Those who can deliver products quickly, reliably and efficiently strengthen their market position and increase customer satisfaction.
Lead time is a key performance indicator when it comes to the efficiency of production processes – it provides information on the efficiency of all steps from order to delivery.
For manufacturers aiming to increase production and reduce costs, a short overall lead time is a key objective.
But how can this goal be achieved? The answer: through a combination of organizational, technical and strategic optimization.
Integrating local suppliers into the supply chain
Creating optimized production conditions
Clear processes and work instructions
A structured process begins with clear roles, responsibilities and comprehensible work instructions. These not only ensure smooth processes, but also avoid errors, reduce waste and save time. The visual preparation of work plans also improves transparency in the production process.
Using automation and new technologies
Early detection of faults
Outsource sub-processes
Implementing the just-in-time method
Just in time reduces storage costs, minimizes waste and improves process synchronization throughout the supply chain. JIT requires precise planning, close coordination with suppliers and a stable supply chain. The principle originally comes from the Japanese automotive industry, particularly Toyota.
Flexibilization through lot splitting
Less lead time, more success: optimizing production with digital tools
Reducing lead times requires more than just selective measures. It is a comprehensive strategy that affects all levels of production, planning and cooperation within the supply chain.
A well thought-out combination of automation, clearly structured processes, flexible production batch sizes and the introduction of the just-in-time method can not only increase companies’ productivity, but also sustainably improve their value chain.
The tepcon “instructor” expands the possibilities here with quickly created work instructions, test protocols, video and 3D instructions and detailed documentation. Improvements can therefore help to reduce throughput times on several levels: very simply, with little personnel effort and remotely at any time on any device.
Those who systematically utilize the possibilities for shortening lead times create measurable added value – for their own company and for customers alike.
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