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Customer Benefits

How Customers Benefit From Lean Manufacturing

Element Functional Cellular Improvement
Response Weeks Hours 70%-90%
Customization Difficult Easy Competitive Advantage
Delivery Speed Weeks-Months Days 70%-90%
Delivery Reliability Erratic Consistent & High Up To 90%
Delivery Quantities Large Shipments JIT As Required Locks In JIT Customers
Quality Erratic Consistent & High Delighted Customers

The customer sees improved quality and this is an obvious benefit to both customer and supplier.

Customers see faster response to unusual requests for customized products or expedited delivery. They see faster and more reliable average deliveries that make their tasks easier. Cellular manufacturing allows manufacturers to deliver small quantities reliably without holding large inventories. The inherent quality improvements in a cellular layout also find their way to appreciative customers. 

When suppliers implement Lean Manufacturing, customer response is often the most obvious improvement. Response refers to the time required for the manufacturer to react to customer needs. 

Fast, reliable deliveries are a hallmark of cellular manufacturing. This is because the reduction of queues and inventory speed products and components through the system. When fast delivery is a requirement for a given market, fast throughput or an extensive finished goods stock are the only options.

In some markets, fast delivery is not important, but reliable delivery is. This means that the manufacturer delivers the product when it says it will deliver. 

As an example, a manufacturer of large power transformers was in a market where new substations are planned years ahead. The customers have many months to order their transformers. Once on order, however, it is crucial that the transformer is delivered at the appointed time. If the transformer is not delivered on the scheduled date, construction crews wait and the project must be re-scheduled.

cellular manufacturing customer metricsFunctional layouts tend to require large lots and infrequent deliveries or they require extensive finished goods inventories. With cellular layouts, it is easier and less costly to manufacture in small, frequent lots. This usually matches customer needs more closely.

Other Lean Manufacturing Benefits

Material Handling
Inventory & Scheduling
Quality Benefits
Benefits for People
Customer Benefits

 

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