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Speed up production lines for Supply Chain agility.
Plant residence time is the total time elapsed between input materials entering a plant and corresponding finished goods leaving the plant. It is one of the measures defining responsiveness of the manufacturing operations. Improving responsiveness involves reducing the residence time, especially for the bottlenecks.
Residence time has two components. One is the actual processing time when materials undergo transformation in manufacturing. The other component is all the material handling, movement and waiting time in the plant.
In most companies, actual processing time is only a tiny fraction of the total residence time. The non-value added time in handling, in-plant movement and waiting can be reduced using principles of lean manufacturing.
Agile supply chains focus not only on improving performance of bottlenecks, but on speeding up the entire operations as well.
TOC and Lean Manufacturing go hand in hand for improving supply chain agility.