What is Quick Response Manufacturing?
- A powerful method for slashing lead times in all your operations!
The theater of competition for manufacturing firms is speed — not only speed in production but
throughout the entire customer chain. New doors open for those who can get products to market
before the competition and sustainable success hinges on the ability to be responsive. This
strategy is defined in Quick Response Manufacturing (QRM).
QRM is a companywide strategy to cut lead times in all phases of manufacturing and office
operations. It can bring your products to market more quickly and secure your business
prospects by helping you compete in a rapidly changing manufacturing arena. It will increase
profitability by reducing non–value–added time, cutting inventory and increasing return on
investment.
Greg Renfro, Vice President of Global Manufacturing Strategy at National Oilwell Varco (NOV),
says, "Quick Response Manufacturing will change the face of manufacturing as we know it."
How is QRM Different from Lean?
Although Lean Manufacturing techniques are popular today, the key Lean tools are derived from
the Toyota Production System and work best for higher-volume production. Core techniques in
Lean such as Takt Time, Standard Work, Level Scheduling and Kanban are designed to
eliminate variability so these techniques break down in the face of high variability, low-volume
or custom production.
QRM is designed from the ground up for companies making low-volume and customengineered products. In QRM you still eliminate dysfunctional variability (caused by
errors and poor systems -- e.g. rework, machine breakdowns, or constantly changing priorities).
However, you do not eliminate strategic variability (introduced by a company to maintain
its competitive edge such as offering numerous product options or individually customized
products). Instead, in QRM you exploit strategic variability to gain competitive advantage.
QRM enables you to do this through four core concepts:
•
The Power of Time,
•
Organizational Structure for Quick Response
•
Understanding and Exploiting System Dynamics, and
•
Creating a Unifying Strategy for the Entire Enterprise
What are the costs and benefits of QRM?
Companies that implement QRM typically see significant decreases in lead time, from 50% to as
much as 90%. This results in significant improvements in profitability and cash flow while
building market share.
Companies from John Deere and Harley Davidson to small
manufacturers have all made presentations at the QRM Conference describing their significant
improvement. Perhaps the most notable is National Oilwell Varco (NOV) who attributes QRM
as being a cornerstone in their rise in shareholder value (see Barron’s, May 12, 2008).
Smaller companies have also seen dramatic results as well since the concepts are universal and
not dependent on a large commitment of resources for implementation. Companies often begin
their change by reading Dr. Rajan Suri’s book It’s About Time and then host or attend training
sessions. They can then begin implementation through policy changes while developing QRM
cells for longer term success. Training people at all levels of the company in the need to focus on
lead time reduction will be unlock the skill of everyone in the customer chain so that sustainable
success becomes part of the culture. The cost for this effort is dwarfed by the impact of
throughput and profitability increases achieved through lead-time reduction.
QRM Support
Dr. Rajan Suri, Professor Emeritus of the University of Wisconsin, originated the QRM concept
with his 1st book in 1998. He has since written a follow-up book, It’s About Time, to describe
advancements in the concept of Quick Resonse.
In 2006 Dr. Suri received the prestigious Albert M. Sargent Award from the Society of
Manufacturing Engineers (SME) for the creation and implementation of QRM philosophy.
He was recently honored as one of only 10 people to be inducted into the Industry Week 2010
Manufacturing Hall of Fame. He is now working with companies around the world to spread the
message of lead time reduction through training, consulting, and speaking engagements.
The Center for Quick Response Manufacturing was established in 1993 at the University of
Wisconsin-Madison as a forum to learn the theory and practice of QRM and to help in the
transition from the theoretical to the practical. Over 200 companies of various sizes, products,
and locations have used QRM to reduce lead times, and nearly 50 of those continue as
supporting industry partners. Center members have the opportunity to not only remain on the
cutting edge of manufacturing, but to create it. The Center facilitates a partnership among
industry, faculty and students at UW-Madison and conducts various lead time reduction
projects, seminars and workshops throughout the year.
Bill Ritchie, President of Tempus Institute, has with more than 25 years experience in general
management and operations in several industries, including two divisions of Textron (Union
Pump and Cone Drive), Boston Gear, and Stanley Works. He has led improvement programs
that have generated significant reductions in cost and inventory, generating dramatic growth in
profitability, cash flow, and customer satisfaction. Bill is a certified trainer in Quick Response
Manufacturing (QRM) and is actively involved with the Center for QRM at the University of
Wisconsin.