Decision Sciences Journal
Volume 27, Number 3
Summer 1996
A Theoretical Model of Manufacturing Lead Times and Their
Relationship to a Manufacturing Goal Hierarchy
John G. Wacker
Department of Management, College of Business, Iowa State
University, Ames, IA 50011-2065
ABSTRACT
In recent years, manufacturing firms have realized that a new,
higher level of global competition causes them to compete
simultaneously on multiple manufacturing goals, such as quality,
delivery, cost, and flexibility. In response to this realization,
considerable research now focuses on the relationship of
manufacturing improvement programs to manufacturing goals. However,
to date, this research has not investigated the specific underlying
statistical relationships between manufacturing goals and the shop
floor. This study investigates manufacturing lead time linkages
with manufacturing programs and manufacturing goals. The basic
purpose of this study is to understand and explain how programs
affect the elements of manufacturing lead time and how
manufacturing lead time affects manufacturing goal capabilities. By
understanding these linkages, managers can logically trace the
effects of specific programs to their eventual effects on
manufacturing goal capabilities.
This study's most important finding is that statistical
variations in the elements of lead time cause a tendency for
certain manufacturing goals to be more difficult to control and
achieve than others because of canonical relationships of lead time
variances. To control these lead time variances, successful firms
concentrate their early program targets first on achieving "fitness
for use" quality, followed by delivery reliability, short delivery
lead time and cost, current product flexibility, and lastly, new
product flexibility. This study mathematically illustrates which
improvement programs most affect manufacturing goals through their
relationship to manufacturing lead time variance reduction. It
suggests that firms improve goal performance by initially targeting
improvement through setup time reduction programs, defect reduction
programs, and preventive maintenance programs, to facilitate
quality improvements. By targeting specific programs and their
related lead time variances, firms improve their manufacturing
facility competitiveness with minimum obstacles.
Subject Areas: Manufacturing Goals, Manufacturing Lead
Time, Manufacturing Strategy, and World Class Manufacturing.
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