Lizbeth Marie Lim
MA2N0226
Supply Chain Management
1. The lead times became long due to the time between the orders was
received and operations began working on producing the final
product. Production of orders was said to take an average of about
two weeks. The main problem was brought about by the process of
transmitting the customer’s orders (which was done manually), as
well as the current production is also one of the reasons as to why the
problem exists. The production
control
supervisor
actually
mentioned that if it is not due for a long time, the order would be kept
in his desk up until weeks before releasing it. This leads to a domino
effect wherein the entire production system is affected, making the
lead times longer than it is supposed to be. Even though the company
is making use of the SAP system, they use it more for
accounting/finance than planning/scheduling.
2. Starck may reduce lead times by actually getting the people involved
in the production process to revise their production plan, particularly
in putting more of the SAP into good use (specifically for production
planning and scheduling). Also, the purpose of the drumbeat meetings
should be revised so as to make the company’s processes more
efficient instead of always having to expedite orders that are late.
Another thing that would aid in reducing the lead time would have to
be keeping a standard level of inventory for particular items needed
before proceeding to production order number 3, which requires
intermediate materials to be complete prior to proceeding to making
the final products for the orders of the customers.
3. Benefits of reducing lead time:

Leads to less accumulation of inventory (items do not become
obsolete as fast)

Leads to less number of orders being cancelled.

Forecasting for demand would be more accurate since it will be
easier to monitor the flow of the products

Less costs on the part of the company

Allows for the company to gain competitive advantage
Costs of reducing lead time:
 Time is required to plan for changes in the production system
 It may be necessary to purchase new equipment that will help in
for reducing lead time (case-to-case basis)