Lead-Time Reductions in SME's

Background: Over recent years many manufacturing or ga nisations have focussed their attention on improving operational effectiveness. Whilst improvements made have increased the level of manufacturing efficiency in many cases these have not been reflected within SME’s by their response in me eting customer lead times. Aims: Whilst considerable efficiency gains have been made in the manufacturing e nvironment the improvements achieved have not necessarily been reflected in the attainment of customer delivery times. The paper seeks to examine the reasons fo r this apparent anomaly in as far as some SME’s not meeting the lead times as qu oted to the customer. Using a case study approach the authors will examine how a considerable number o f SME’s are concentrating their efforts on reducing the lead-time of activities associated with the manufacturing process whilst paying little attention to cos ts and activities indirect to the business. The paper will analyse associated a spects involving the management of such organisations and assess if human resour ces are being used and deployed efficiently and effectively. Using information obtained from recently undertaken case studies the analysis will encompass t he present-day situation, economic climate, trends and fashion. Objectives: · Identify some main reasons why many customer orders fail to be delivered on t ime. · Analyse the link between customer and buyer (Internally and Externally) and the relevant theories of differing relationships from adversarial to partnership collaboration · Examine the trends in operational management to see how these impact upon the organisation · Confirm the type of marketplace a responsive philosophy is best suited · Examples will be supported by case studies to highlight that SME’s need to fo cus their attention outside the manufacturing process to gain a competitive advantage in reducing the lead-time. · Examine the effects and benefits on the organisation (buyer & seller) when op erating within a responsive supply chain. Summary: The authors will review existing literature and methodology and will co mbine analytical theories with practical case studies.