Reduce Process Time to Reduce Cash-to-Cash Cycle Time

To reduce the number of days to make and ship the product from the time the order is received; implement  Drum Buffer Rope (DBR)[1] Scheduling which results in a mean reduction of lead-times of 70%[2]. For the example we started yesterday, let’s say the 4 week lead-time would shrink to 9 days. That gives us a new cash-to-cash cycle time of 115 days (134 days less 28 days lead, plus the new 9 days lead).

Velocity Scheduling System is drum buffer rope for custom manufacturers like job shops and machine shops.

[1] We actually implement S-DBR, Simplified DBR (also known as DBR II) in most cases. You can learn more about S-DBR in the book Manufacturing at Warp Speed by Eli Schragenheim.
[2] The World of the Theory of Constraints, Mabin and Balderstone

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