ABSTRACT
Shortening production lead time is the most important aspect of managing short-term orders that contain a wide variety of product specifications. In the level-one factory, people think that when deliveries fall behind, the line can be accelerated by feeding in more materials, thereby prompting the workers to work faster. Everyone understands the importance of reducing inventory, the effects it brings, and the specific methods for reaching targets. Using handbook guidelines, teams are formed to address inventory reduction needs for specific parts. The team works through the organization to reduce inventory levels for its assigned parts. With processes streamlined, the plant's material and information inventory are reduced by more than 80 percent, preparing the company to manufacture products flexibly in response to diverse customer needs. Moreover, the company has drastically reduced lead time for order processing, new product development and design, manufacturing, and shipment, which enables it to respond better and faster to user needs.
