Strategic lead-time management - Logistics pipeline management
3 important questions on Strategic lead-time management - Logistics pipeline management
What are the 4 goals of logistics pipeline management?
- Lower costs
- Higher quality
- More flexibility
- Faster response times
What is value-adding time and what is non-value-adding time?
Value-adding time is time spent doing something that creates a benefit for which the customer is prepared to pay.
Non-value-adding time is time spent on an activity whose elimination would lead to no reduction of benefit to the customer.
Non-value-adding time is time spent on an activity whose elimination would lead to no reduction of benefit to the customer.
What does throughput efficiency mean and what is its formula?
How much of the time spent in a supply chain is value-adding?
Throughput efficiency = Value-added time / End-to-end pipeline time * 100
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