Current-State Systm — Weeks

54 Weeks 15 China 3 9
Weekly
schedule

Japan 6
26 Weeks 5 1 2
Weekly schedule
Weekly 2 weeks firm
schedule 9 weeks out
5
Customer
14
6

38 Weeks 4 USA 1 5 1 10 1 5 1 3 USA 1 1 USA 2 1 USA 0

0.5 0.5 0.5 0.5
Mexico 5 Assembly
5
15 plant
4
40 Weeks 6 2 6 1
6
Germany Spain 1
2
6 4
1
33 Weeks 3 Spain 2 2

Company
3 owned plant
26 Weeks 6 Brazil 2
2

Sub-supplier or
customer plant
57 Weeks 6 UK 5 6 1
5
Transport time – weeks
UK 3
15 6
1
90 Weeks 15 Italy 5 20 Inventories – weeks
15

1
Spain 5 When
90 Weeks 10 25 needed

Shortest lead time = 26 weeks. Longest lead time = 90 weeks.

Future-State System — Days

Weekly schedule
12 weeks out
56.5 Days Germany
Steel Daily pull
tube Daily Weekly schedule
schedule 9 weeks out
24 1 week firm
Customer
25

24 Days USA 3 1 2 1 2 0.5 3 2 2 USA 1.5 1 USA 3 1 USA 1

Steel Mexico Mexico 2 Assembly
tube 11
plant
1
2 Company
16 Days USA 3 USA 0.5 owned plant
2.5
Steel
tube Sub-supplier or
customer plant

Transport time – days

21 Days USA
Steel Inventories – days
tube

Shortest lead time = 16 days. Longest lead time = 56 days.