Realizing the productivity potential of speed

This dissertation deals with the productivity potential of speed and its realizations in manufacturing operations. The main results reported are: (1) empirical indications of a strong positive correlation between speed and efficiency in different manufacturing industries; (2) important systems design considerations to facilitate the realization of the productivity potential of speed. Through an analysis of industrial statistics is it demonstrated that the fastest industries appear to be the most efficient in allocating their resources. Evidence from a number of case studies conducted as a part of the research effort indicates that a focus on speed of operations helps expose and remove self-induced sources of uncertainty. This, it is argued, is the reason for the high efficiency of fast industries. The problem of self-induced uncertainty is illustrated with examples from the manufacturing industry. The main contributor to uncertainty in slow operations is distorted communication in the activity system. Two basic sources of distortion in slow operations are identified. First, demand variation is amplified by buffered activity chains. Second, control inertia is the consequence of decoupling dependent activities. In conclusion the communication and control practices that enable faster and more efficient operations in the case companies are presented. Finally, the indications of a speed threshold suggest that commitment needs to be reduced to a point where demand distortion is diminished and a synchronization of production with demand is possible in order to improve performance by speeding up operations.