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Chapter 17: Problem 3

In general, WIP reduction techniques are also lead time reduction techniques, but the reverse is not always true. List some lead time reduction techniques that do not reduce WIP.

Short Answer

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Question: List some lead time reduction techniques that do not reduce WIP (Work In Process). Answer: Some lead time reduction techniques that do not reduce WIP include increasing capacity, parallel processing, improved scheduling, reducing setup time, and accelerated processing.

Step by step solution

01

Understand Lead Time, WIP, and Reduction Techniques

Lead time is the time it takes to complete a process from start to finish. WIP (Work In Process) refers to the number of unfinished products in the production process at a given moment. When reducing lead time, it can impact the WIP, but some techniques can lower lead time without affecting WIP.
02

Technique 1: Increasing Capacity

One lead time reduction technique that does not necessarily reduce WIP is increasing capacity. When you increase the capacity of a production facility or a specific operation, it is possible to reduce lead times without decreasing WIP. For example, adding more machinery or hiring more workers allows completing more tasks in the same amount of time, hence improving lead times.
03

Technique 2: Parallel Processing

Parallel processing is another technique that can reduce lead times without decreasing WIP. In this method, multiple processes are performed simultaneously instead of sequentially. It helps decrease the overall lead time of the process, but it doesn't guarantee a reduction in WIP because tasks are still ongoing in different parts of the production system.
04

Technique 3: Improved Scheduling

By improving the scheduling of operations, it is possible to lower lead times without affecting WIP. Better scheduling ensures that there is a smooth flow of work and eliminates blocking and starving of processes, which eventually leads to decreased lead time. However, this improvement doesn't necessarily reduce the number of incomplete tasks in the production system.
05

Technique 4: Reducing Setup Time

Reducing setup time is another method that can lessen lead times without decreasing WIP. When the time needed to prepare equipment or materials for the next production step is minimized, it leads to a quicker operational pace and shorter lead times. However, since it does not affect the number of in-process items directly, it doesn't guarantee a reduction in WIP.
06

Technique 5: Accelerated Processing

Accelerated processing can be achieved by investing in technology or equipment that can perform tasks more efficiently, reducing the total time it takes to complete a process. As a result, the lead time shrinks, but the WIP stays the same as it was before.

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Most popular questions from this chapter

Why might the EOQ model be better-suited to purchased parts than to internally manufactured products?

How can cycle time reduction reduce raw materials, WIP, and FGI?

What causes large inventories of unmatched parts at an assembly operation? What measures might we consider to address such a situation?

What are the four main causes of the bullwhip effect in multiechclon supply chains? Which causes are likely to have the largest effect in each of the following systems? a. A consumer products distribution network, consisting of the manufacturing plant, regional warehouses, and retail outlets. b. A spare parts network, consisting of a main distribution center, regional facilities, and customer sites. c. A military supply network, consisting of a central warehouse, regional depots, and field usage sites.

List some supply chains in which holding the bulk of the stock at the demand level (e.g., at retail outlets) and making use of lateral transshipments might make sense.
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