WIP Inventory Causes Terrible Lead Times - Why? | Rowtons Training by Laurence Gartside
Vloลพit
- ฤas pลidรกn 20. 08. 2024
- What is the relationship between the quantity of "Work In Process" (WIP) inventory flowing through a system, the throughput time and the throughput rate?
How does increasing the throughput time increase the quantity of Work In Process?
Does more WIP mean faster or slower throughput times and customer lead times?
What can we do to go from a high WIP, slow system to a low WIP, fast system, without affecting the throughput rate....
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Many companies suffer with cripplingly slow lead times caused largely by their own system's incredibly slow throughput times. With large batches and a keenness to keep everyone and every machine always busy, the quantity of WIP grows and grows. But far from making things more "efficient", lead times get longer, impatient customers and urgent orders have to be expedited and the schedule continuously changed causing yet further disruption - certainly not improved efficiency.
But as we show in this walked-through example using a toll road with steady-state traffic (it's a thriller!), the simple decision of how much WIP to have in your system during steady-state running can cause huge lead times that are simply inevitable even if the throughput rate (the quantity of stuff processed through the system per time period) is quite possibly unaffected.
The most fun you can have studying traffic!
Crack On!
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๐ข ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐: International Freight and Shipping
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โ ๏ธ ๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐ : Inventory Control
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๐ ๐๐๐s: ๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐-๐
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๐จโ๐ผ๐ผ Follow me on LINKEDIN for the latest operations management trends and insights
๐๐ผ linkedin.com/in/laurence-gartside/
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๐ชJoin the tens-of-thousands of professionals who have already studied with us and you too can turbo-charge your career and your business!๐ฅ
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#OperationsManagement #kpis #businessperformance #manufacturingbusiness
great video. Thanks for this amazing video
Nicely explained Laurence ....
Thank you Simon :)
niceee
thanks :) glad you liked it
Well done! ๐
Thank you Paul. Hope you enjoyed it :)