Why are the Lead time so long?
I agree with your response to the discussion questions. I am particularly impressed with how you put your ideas to come up with your response. It is true that the lead times could be long due to the recent implementation of the ERP system as well a series of drumbeats meeting that integrated several departments. However, various factors might have also contributed to the situation. For instance, the order cycle takes 2-3 weeks and it takes 8-14 weeks for order to be shipped. Secondly, all the production order stacked within Jim's Desk, until it was tie to release it to the production floor. Alternatively, he may keep it for 4 weeks and release it if at all the order is not due in 8 weeks.
How might Starck Reduce or affect the lead times?
As you have mentioned, it is true to say that the H.C Starck should address the lead time issue by unifying its reporting system. This move does not matter whether they continue with the SAP and operate out issues that are irrelevant to the fact such kind of disconnection between various organizational departments contributes to the emergence of numerous internal problems. In addition to your ideas, I also believe that the Starck must implement the complete functionalities of the SAP software for scheduling, production planning, and more accurate data collection for forecasting. Undeniably, this will play an integral role in saving the lead times and all related processes (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008). Notably, the informative data accessibility can be gathered and accomplished into departments to enable them to work together to beat the lead times down. Moreover, active training schedule should be conducted to the staffs to ensure that they can operate the SAP in a tremendously effective manner. Other than this method, I believe that the tractability methods motivated by the current re-establishment of the flexibility into the comparable foundation of software development can be utilized as a preventive maintenance as well as balancing the lead process.
What are the costs from reducing the lead times? What are the benefits from reducing the lead times?
I agree with you by the fact that you have recognized that several benefits are associated with the reduction of lead times and these include increased customer satisfaction on delivery times and customer retention. Also, I believe that the implementation cost of lead times reduction is associated with other benefits that include simplification of explanations are a significant reduction of inventory financial risks or cost (Szwejczewski & Jones, 2013). The company is likely to benefit from less expenditure after that.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain: Concepts, strategies, and case studies. Boston: McGraw-Hill/Irwin
Szwejczewski, M., & Jones, M. (2013). Learning from world class manufacturers 2012. Basingstoke [u.a.: Palgrave Macmillan.
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