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The Merit of Making Things Fast
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By Roger W. Schmenner
Fall 1988
Reprint 3011
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Volume 30, Number 1, pages 11-17, 7 pages
Primary Topic: Operations
Secondary Topic: Technology and Innovation
SummaryThe author examines the simple but profound hypothesis that reducing throughput time (the length of time between the arrival of raw materials at the factory and the shipment of the finished product) is the single most important determinant of improved factory productivity. He concludes that focusing on throughput time forces managers to reduce inventories, setup time, and lot sizes; in addition, it encourages improved quality, revamped factory layout, stabilized production schedules, and minimized engineering changes. The three research studies on which this article is based indicate that, of all the possible techniques for improving productivity, only the JIT-related ones are statistically, demonstrably effective. |
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