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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Competing in the Marketplace
Competing in the Marketplace
“What factors are important to the customer?”
John Deere - Supplier Development
John Deere - Supplier Development
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
TIME:
TIME: The single best indicator
of competitiveness
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can
make your company more valuable to both its internal
and external customers.
Set-up or Change-over Time
Product Development Time
Manufacturing Cycle Time
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Shrinking Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Manufacturing Lead TimesOrder Lead Times Delivery Lead Times
Reducing the overall time from receiving the order to delivering the
product makes your company more responsive to the customer.
This can become the deciding factor when the customer makes
their selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area
for improvement, as well as, assembly, loading and delivery
to the customer`
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little
time spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
Improvement Efforts Concentrated on reducing VA time,
with no attention given to NVA.
Non-Value Added Time (NVA)
99% of Total Lead time
VA
1/2 %
Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
Common
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Where’s the Time in Lead Time
NVA Time
95% of Total Lead time
VA
5%
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
This shows a 5X improvement in lead time
Great Job!!
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