QRM Results Quantified

Rule of Thumb

What numbers can you expect?

Empirical results gathered for Cost Reduction as a result of Lead Time Reduction

Project #

Lead Time
(% Reduction)

Overall Cost
(% Reduction)

Tubino, Francisco; Suri, Rajan (2000). "What Kind of 'Numbers' can a Company Expect After Implementing Quick Response Manufacturing? Empirical data from several projects on Lead Time Reduction." From Quick Response Manufacturing 2000 Conference Proceedings, R. Suri (Ed.), Society of Manufacturing Engineers Press, Dearborn, MI, 2000, pages 943-972.

1

36.0

36.0

2

39.0

2.0

3

54.5

18.0

4

57.1

13.0

5

60.0

16.9

6

79.0

49.0

7

80.0

32.0

8

85.6

33.0

9

86.7

16.5

10

88.0

13.1

11

92.9

28.0

12

93.8

40.0

 

Supply Chain

QRM's impact on the bottom line

Commodity

MCT (in days)

% MCT Reduction

% On-Time Delivery

As-Delivered PPM

% Cost Reduction

Before After Before After Before After

Ericksen, Paul; Suri, Rajan (2001). "Managing the Extended Enterprise". Purchasing Today 12 (2).
MCT = Manufacturing Time Cycle
PPM = Quality in Part Per Million Defects

Blades

15

2

87

74

97

4,500

300

11

Knives

104

15

86

40

88

12,000

1,500

22

Hydraulic Valves

141

10

93

40

98

50,000

1,500

14

Hydraulic Motors

42

18

57

40

97

15,000

500

13

Wiring Harnesses

32

2

94

43

99

3,000

500

20

Seat Assemblies

25

5

80

40

95

50,000

500

16

Machined Parts

22

10

56

99

99

300

300

12

Circuit Boards

25

16

36

99

100

3,164

14

17

MCT

MCT Reduction and Cost

MCT
Reduction

Inventory
Savings

Production
Cost Savings

Total
Gross Savings

Hayner, Andy (2011). "Realizing Business Impact Through Time-Driven Continuous Improvement, Wiscosin Manufacturing Extension Partnership (WMEP)" From Quick Response Manufacturing 2011 Conference Proceedings, A. Krishnamurthy (Ed.)

Company 1

17%

$ 69,041.00

$ 18,581.00

$ 87,622.00

Company 2

45%

$ 45,300.00

$ 2,015.00

$ 47,315.00

Company 3

29%

$ 218,743.00

$ 70,010.00

$ 288,753.00

Company 4

45%

$ 2,574.00

$ 3,880.00

$ 6,454.00

Company 5

73%

$ 69,476.00

$ 27,519.00

$ 96,995.00

Company 6

11%

$ 6,650.00

$ 7,830.00

$ 14,480.00

Company 7

53%

$ 188,497.00

$ 389,988.00

$ 578,485.00

Company 8

13%

$ 646.00

$ 656.00

$ 1,302.00

Company 9

22%

$ 3,022.00

$ 3,127.00

$ 6,149.00

Company 10

82%

$ 171,696.00

$ (3,485.00)

$ 168,211.00

Company 11

54%

$ 11,194.00

$ 322.00

$ 11,516.00

Company 12

79%

$ 258,663.00

$ 387,363.00

$ 646,026.00

Company 13

39%

$ 1,358.00

$ 381.00

$ 1,739.00

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