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DBR example from Necessary but not Sufficient 1 J. Kacs Thanks for your feedback on NBNS. Let me see if I can help. DBR not only will reduce inventory but it will also reduce leadtime because it frees capacity. Remember that lead time and inventory are connected. The less inventory that is in the system is the faster the flow through the system. It is not uncommon in a company that implements DBR to discover they have 20% or more capacity than what they had before due to the reduction of queue in front of the bottleneck. The IT system had absolutely nothing to do with the decrease in the delivery terms. The constraint was indeed inside the production process. The IT system helped codify the new practice of DBR and bring the visibility of what is really required. DBR always reduces lead time because of the reduction of queue in front of the bottleneck. The important thing is to not give this improvement away for the same price in the marketplace otherwise you can swamp your company with demand for the shorter lead time at that price. I hope that helps
by C. Ptak
Sunday, September 7, 2014