Lean Approach to Lead Time Reduction in MTO Manufacturing: A Case Study

Abstract

In order to improve operational performance, many companies adopted lean approach in their manufacturing processes. Although most of those companies revealed to be effective in lean implementation, small and medium-sized make-to-order (MTO) companies, faced with high mix and low volume production, had difficulties to implement lean. The mix of orders and the specific demands of every customer can increase the time from the placement of an order to the delivery to a customer. In that case, lead time can be long since the process typically includes steps such as ordering/sales, design, adjustment, procurement, production, assembly, delivery and installation. In order to reduce lead time in manufacturing processes, implementation of lean approach can be of great benefit. For that purpose, this paper analyzes lean approach applicability to MTO companies. The paper presents the implementation of lean in MTO manufacturing company that deals with the production of custom furniture. The results were obtained through systematic identification and elimination of wastes in all phases of the process, and show that significant lead time reduction can be achieved through lean implementation in MTO manufacturing.