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From the Founder
Lean Manufacturing techniques can be powerful in certain situations. But for companies that make custom-engineered products in low or varying volumes, Lean Manufacturing has drawbacks. Quick Response Manufacturing can be a more effective competitive strategy for these organizations. The following four core concepts provide a brief overview of QRM strategy:
a. The Power of Time: While everyone knows that time is money, QRM addresses the non-obvious reasons lead time is important (much more important than most managers realize), how it influences total operating costs and quality, and how to take advantage of this realization.
b. Organizational Structure: Once you realize the huge significance of lead time, QRM shows you how to restructure your organization to minimize lead time throughout your enterprise.
c. System Dynamics: QRM shows how interactions between machines, people and products impact your lead times. As a result, capacity planning policies (e.g. machine and labor utilization) and lot sizing policies need to be reconsidered.
d. Enterprisewide Application: QRM is not just a shop floor approach; it is applied throughout the organization. It encompasses material planning and control, purchasing and supply chain management, office operations such as estimating and order processing, and new-product development. As one example, QRM strategy includes a technique called POLCA, a shop floor alternative to kanban (kanban does not work well for variable-volume or custom products).
Numerous case studies and conference presentations by top executives from QRM Center member companies have provided concrete data on the bottom line impact of QRM. In partnership with the center, companies have gained market share and increased profits through their ability to deliver customized products with short lead times, high quality and at competitive costs. I encourage you to partner with the QRM Center to learn more about principles of QRM, enabling you to reap the rich benefits of implementing QRM throughout your organization.
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| Rajan Suri |
| Founder |