Lead time reduction strategies in international high mix low volume contexts

Sammanfattning

Lead time management is complex and difficult to optimise in high-mix low-volume (HMLV) contexts with extreme variance in products. Previous research has handled lead time reduction strategies in isolation, rather than holistically throughout the value chain. The purpose of this study was to understand how lead time reduction strategies can be implemented around the customer order decoupling point (CODP) to manage lead times in firms operating in high-mix low-volume contexts. A qualitative document analysis of eight secondary case studies on Engineer-to-order (ETO) and Make-to-order (MTO) firms was conducted. To analyse these firms, a theoretical framework was developed based on the CODP concept and theories of lead time reduction strategies, specifically modularisation, Workload Control, Lean manufacturing, and the Theory of Constraints (TOC). The analysis concludes that the positioning of the CODP dictates the scope and relevance of lead time reduction strategies; upstream strategies reduce complexities and engineering time while downstream strategies optimise the production flow. Ultimately, reducing lead times requires deliberate strategies that carefully navigate inherent trade-offs to avoid compromising the firm's core competitive advantage. Further research on postponement of customisation strategies and extent of standardisation and its effects on the competitive advantage of HMLV firms is recommended.