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Quick Response Manufacturing (QRM)

Aug 09, 20242 min read

Up:: Productivity X:: Lean Manufacturing X:: Toyota Production System (TPS)

Quick Response Manufacturing (QRM) is an approach to manufacturing which emphasizes the beneficial effect of reducing internal and external lead times.

Wikipedia

Quick Response Manufacturing (QRM) is a companywide strategy to cut lead times in all phases of manufacturing and office operations.

Key aspects:

  • QRM's overarching focus is on time as the guiding management strategy
  • Ideally suited for companies offering high-mix, low-volume and custom-engineered products
  • Can be used as an addition to existing Lean, Six Sigma, and other improvement efforts

Core Concepts

Time is the most valuable resource in an enterprise

In most manufacturing companies, the amount of time a product is actually worked on accounts for less than 5% of the total lead time.

(source: https://qrm.engr.wisc.edu/what-is-qrm/#time-is-money)

How QRM Works

  1. QRM uses Manufacturing Critical-path Time (MCT) as a comprehensive definition of lead time
  2. QRM cells are the main organizational unit, designed around a Focused Target Market Segment (FTMS)
  3. QRM cells are dedicated, collocated, and multifunctional
  4. QRM emphasizes creating spare capacity (around 80% utilization) to handle variability
  5. QRM encourages smaller batch sizes to reduce lead times

QRM vs Lean and Six Sigma

  • Lean and Six Sigma work well in high-volume production environments

  • QRM is designed for high-mix, low-volume and customization environments

  • QRM distinguishes between "dysfunctional variability" and "strategic variability"

  • Like Lean, QRM aims to eliminate dysfunctional variability

  • Unlike Lean, QRM does not eliminate strategic variability, but exploits it

    1. Dysfunctional Variability:
      • Errors, ineffective systems, and poor organization
      • Causes rework, constantly changing priorities, and “lumpy” demand
      • QRM aims to eliminate this type of variability, similar to Lean and Six Sigma
    2. Strategic Variability:
      • This form of variability is introduced to enterprises in order to compete in the market (have a lot of choice)
      • Examples include:
        • Ability to cope with unexpected changes in demand
        • Offering a large selection of options for customers
        • Providing custom-engineered products
      • QRM does not eliminate strategic variability, but exploits it
      • QRM organizations are designed to effectively cope with this

Implementation

QRM implementation typically involves:

  1. Creating a QRM mindset
  2. Changing organizational structure
  3. Incorporating system dynamics
  4. Expanding QRM enterprisewide

QRM enables organizations to exploit strategic variability and compete in markets requiring high levels of customization.

POLCA

QRM uses POLCA (Paired-cell Overlapping Loops of Cards with Authorization) for production control.

Good sources:

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