A recent survey of published results by manufacturing and service companies[1] that have applied constraint management methods effectively shows:
- A mean reduction in lead time of 70%
- A mean reduction in manufacturing cycle times of 65%
- A mean improvement in due-date performance of 44%
- Mean inventory reductions of 49%
- A mean combined financial improvement (revenue, throughput, profit) of 76%
[1] Mabin, Victoria J. and Steven J. Balderstone, The World of the Theory of Constraints: A Review of the International Literature, St. Lucie Press, Boca Raton, FL, 2000
[Excerpt from Schragenheim, Eli and H. William Dettmer, Manufacturing at Warp Speed – Optimizing Supply Chain Financial Performance, St. Lucie Press, Boca Raton, FL, 2001]
If you would like help getting started with apply constrain management to your business for rapid ROI and ongoing improvement, please contact me. Find me on LinkedIn.
1 comment:
As you gave out the summary of the survey I felt that the data is really impressive and for a mean reduction in manufacturing cycle times of 65% is great improvement.
Post a Comment