Quick response manufacturing

Quick Response (English, German: about Rapid response ) is a strategy with the goal of being able to respond more quickly to market developments. It is based on a cooperation between retailers, distributors and producers, and to accelerate both the exchange of information, as well as the flow of goods.

Quick response leads to a minimization of response time to unexpected change in demand, as well as to a reduction in inventories throughout the supply chain. The permanent exchange of information is achieved by linking the information systems. Mostly this one EDI standard used.

Concept

Quick Response is particularly suitable for companies whose products have a fluctuating demand, are technically complex or introduce on the market.

The food producer Nestle and the textile company Levi Strauss are just two examples of organizations that have implemented quick response in order to increase their efficiency.

The concept was developed by the consulting firm Kurt Salmon Associates in the United States. In the textile industry, although individual partial processes cooperate effectively, but the whole system was extremely inefficient, since the communication between the individual value chain was low. Key elements of the model are:

  • The introduction of barcodes and scanners cash
  • Electronic Data Interchange (EDI )
  • The change of internal processes, particularly through automation
  • Joint management of the supply chain in terms of consumer satisfaction
  • Cooperation in the areas of marketing, research and development

Using the obtained data at point of sale or transfer of such information to all chain members improved sales forecasts to be created. As a result, delivery processes can be planned more efficiently.

Due to the great success of the concept in the textile industry, many companies have continued to develop the concept from various industries and adapted to individual needs.

Critical Appraisal

Benefits

A company that has deployed Quick Response, among other benefits from the following advantages:

  • Reduction of throughput times by 80 to 95 %
  • Reduction of production costs by 15 to 30 %
  • Improving the timely delivery of power 60% 99%
  • Reduction of waste and rework by 80 % or more

Further advantages by comparison of Quick Response with Lean Manufacturing or JIT method:

  • The basic distinction is the time-based mindset. While traditional policies try to reduce waste, all the principles and strategies of Quick Response are geared towards the reduction of lead times.
  • Thus, the management is able to communicate a single destination for the entire organization must be aligned with the all policies.
  • Quick Response is an enterprise- wide strategy, while JIT and Lean production primarily focus on areas of procurement and manufacturing.
  • The positive aspects of push and pull strategy can be combined depending on the situation.
  • The response to fluctuations is seen in certain markets as an opportunity to gain competitive advantages. On the other hand try JIT and Lean process only to eliminate fluctuations. Quick Response thus creates an effective organizational structure to deal with given situations and to supply markets.

Disadvantages

Despite the obvious advantages in the application, some managers are faced with problems of implementation of Quick Response Strategy.

Implementation of Quick Response

A company-wide understanding of the basics must be given, which means that each member of the organization must know what Quick Response means, why it is necessary and how it works. Furthermore, the policy is to be introduced in all areas and at all levels.

The implementation should be made by an abrupt reorganization of the whole company, but gradually. Recommended focusing on a market segment in which the chance that a small part of the organization can supply the market during the reorganization. Thus, risks and investments can be minimized during the learning process throughout the company expires. The reduction of lead times can not be performed as a tactic, but must be passed as a quick -response strategy of the guide.

Need in order to achieve the desired goals change traditional business practices and redefine organizational structures.

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