Capacity Bottlenecks : Illusions and False Gods"I'm sorry, sir ", says the order reception clerk on the phone, "There's a 20 week delivery". The would-be customer gulps in disbelief and protests that the part enquired of could be made from start to finish in two working days.
"That may be so, sir, but I'm afraid we have a production bottleneck on it - 20 weeks is the best we can do". Really? How can a part that takes two days to make accumulate to itself a 20 week lead time? To answer the question, we must understand how lead time inflation is created through the vicious circle.