The lead times can be defined as the time interval initiated by the customer’s order placement and terminated once the product has been shipped (Simchi-Levi et al., 2008). The main reasons behind the prolonged time of order transportation include the company’s failed attempts to modernize the procedure. In that way, H.C. Starck had installed a new ERP system meant for analyzing and organizing all the firm’s processes except production planning and scheduling (Simchi-Levi et al., 2008). Hence, the main transactions involved in decreasing the lead times were conducted manually and had, therefore, limited credibility as effective business strategies. The poor implementation of modern technology in analyzing and categorizing the available data was the most influential factor in setting the lead times.
Consequently, the lead time can be reduced by the employees correctly referring to novel methods in reviewing the necessary data for the product shipment. For a new system to be integrated successfully, the employees must believe in the reliability of new technology instead of focusing on their own experience and knowledge as well as manual labor. Moreover, the main emphasis in affecting the lead time must be placed on the production processes. The overall lead time will be minimized by reviewing and reducing the unnecessary procedures related to each manufacturing step. The organization of “blanket orders” to reduce production wastes will also decrease the lead time by the time it takes to scrap unnecessary sections (Simchi-Levi et al., 2008). Therefore, Starck can reduce lead time through the incorporation of novel and effective production methods.
The costs from reducing the lead times are related to the company’s jeopardized position in the global market. For example, Rich expressed “concern about a Chinese company that recently started selling Ta wire” (Simchi-Levi et al., 2008, p.56). Reducing the production costs or modifying the manufacturing methods will inevitably alter the position of Starck in relation to its competitors. At the same time, the company risks losing customers during the period of time allocated to making the necessary changes to its structure. The novel technologies must be implemented swiftly to avoid major liability in the customer decrease. As an additional cost of such procedures, employees will have to dedicate more time and effort to acquire the new strategies without jeopardizing the customers’ time.
The benefits from reducing the lead time are primarily centered on client satisfaction rates and the company’s long-term success. Changing the lead time from 8-14 weeks to 3 weeks will definitely improve the brand’s ratings and position in the global market. While competitors may offer lower prices for similar products, values of high-quality items and prioritized customer service will inevitably lead to more long-term devoted customers. Ultimately, the procedures involved in reducing the lead time demonstrate the importance of organizing the manufacturing process in accordance with modern methods. Hence, a general benefit from the process is one that includes modifying the company’s principles to more relevant ones.
The main biblical principles that apply in making these decisions include those that prioritize the freedom and wisdom God gives us. God gives wisdom to choose, and God gives us freedom (and responsibility) to choose are the two central principles that apply in altering a company’s structure and further development (Friesen & Maxson, 2009). While there is no command to act a certain way, the will of God in allowing the liberty to make grand business decisions suggests the need to make decisions that will benefit both the company and its customers.
Friesen, G., & Maxson, J. R. (2009). Decision making and the will of God: A biblical alternative to the traditional view. Multnomah.
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., & Shankar, R. (2008). Designing and managing the supply chain: concepts, strategies and case studies. Tata McGraw-Hill Education.