JÚNIOR,E.R.Análise dos Gargalos Logísticos Visando uma Proposta Para Redção dos LEAD TIMES do Processo de Imprtação: O Caso da Universidade Federal do Ceará.2010 161f.Dissertação(pró-Reitoria de Pesquisa e pós-Graduação)- Programa de Mestrado em logística e Pesquisa Operacional, Universidade Federal do Ceará, Fortaleza, 2010. / Submitted by Winne Gomes da Silva (winnegomez87@gmail.com) on 2012-05-30T17:36:11Z No. of bitstreams: 1 2010_dis_erjunior.pdf: 1617239 bytes, checksum: 772957bb851db17f2841af4fd9856951 (MD5) / Rejected by Nirlange Queiroz(nirlange@gmail.com), reason: Ver autor on 2012-06-08T11:29:13Z (GMT) / Submitted by Winne Gomes da Silva (winnegomez87@gmail.com) on 2012-06-08T12:02:27Z No. of bitstreams: 1 2010_dis_erjunior.pdf: 1617239 bytes, checksum: 772957bb851db17f2841af4fd9856951 (MD5) / Approved for entry into archive by Nirlange Queiroz(nirlange@gmail.com) on 2012-06-20T11:51:22Z (GMT) No. of bitstreams: 1 2010_dis_erjunior.pdf: 1617239 bytes, checksum: 772957bb851db17f2841af4fd9856951 (MD5) / Made available in DSpace on 2012-06-20T11:51:22Z (GMT). No. of bitstreams: 1 2010_dis_erjunior.pdf: 1617239 bytes, checksum: 772957bb851db17f2841af4fd9856951 (MD5) Previous issue date: 2010 / The fast growth of international trade and the constant changes in the global scenario, make international logistics an area of great importance, however, still poorly understood. This research focuses on the import logistics and presents a study conducted at the Federal University of Ceará. As a guiding purpose, one has to identify fault and bottlenecks that contribute to the increase of the factor time, in imports of equipment for scientific and technological research at the University, based on the investigation of impediment and barriers of the process in order to maximize results and improvement of logistics operations. The method used was based on documentary and bibliographical research, characterizing also be exploratory, descriptive and applied to a case study. The expected results were observed from the mapping of process stages, the measurement of lead times, and the use of questionnaires that had the purpose of supporting and adding data to the research, enabling thus, the resolution of the problem-question and the knowledge that factors such as, information, collaboration, integration and debureaucratization, will contribute positively to the management of logistics operations of the institution. / A rapidez no crescimento do comércio internacional e as mudanças constantes nos cenários mundiais fazem da logística internacional uma área de grande importância, porém, ainda pouco compreendida. Esta pesquisa foca na logística de importação e apresenta um estudo realizado na Universidade Federal do Ceará. Como objetivo norteador tem-se identificar as falhas e os gargalos que colaboram para o aumento da variável tempo nas importações de equipamentos destinados à pesquisa científica e tecnológica na Universidade, a partir da investigação dos entraves e barreiras do processo, visando à maximização dos resultados e a melhoria das operações logísticas. O método utilizado apoiou-se em pesquisa documental e bibliográfica, caracterizando-se, ainda, ser exploratória descritiva e aplicada a um estudo de caso. Os resultados esperados foram observados a partir do mapeamento das etapas do processo, da mensuração dos lead times e da aplicação de questionários que tiveram a finalidade de corroborar e acrescentar dados à pesquisa. Conclui-se que a pesquisa possibilitou a resolução da questão-problema e a compreensão de que ações como informar, colaborar, integrar e desburocratizar contribuirão positivamente à gestão das operações logísticas da instituição.

In this study, we investigate how lead time is affected during development of a large-scale telecom product. We collected raw data from the product’s Gerrit repository which were later processed with statistical analysis. When we analysed the various areas, we concluded that a method to divide the lead time into different sequences would be the preferred method. We therefore chose to analyse lead time for different parts of the development. We found that on average lead time is roughly 3,4 days for the areas we investigate. The results indicated that lead time for reviewing increases with the years. The results also indicated that the lead time decreases for developers as they become more familiar with the product however the overall lead time for implementation did not. This can be as developers switch tasks internally or decides to change employment. The results also indicated that there is no relation between the amount of submitted LOC and lead time.

Pallets are a critical component of logistics infrastructure. Approximately 1.9 billion pallets are used each year in the United States for transportation of goods, from raw materials to finished products. Solid wood pallets represent 90% to 95% of the pallet market. To run their operations, wood pallet companies deal with suppliers, customers, and other supply chain components. Each of the steps is important to deliver the right products, with the required quality, and in a timely fashion. However, there is little research about the industry's supply chain practices. The objective of this research is to increase the understanding of the U.S. wood pallet manufacturing industry, its supply chain management practices, and factors affecting the supply chain management processes. To accomplish the research objectives, a nationwide mail survey of wood pallet manufacturers was carried out. In total 1,500 companies were sent questionnaires and the response rate was 14%. A model for supply chain success factors was developed based on previous research and was analyzed using the results from the survey. Results of the survey provide an up-to-date profile of the US wood pallet industry. It was found that pallet production per company was 727,229 units on average during 2009. Out of the 1500 respondents, 38.6% indicated they were medium-sized companies (20 to 99 employees) and 53.9% small companies (1 to 19 employees). Thirty five percentage of respondents indicated that their sales were less than one million dollars and 43% from one to five million dollars. Also, 45% of respondents were involved in pallet recycling or repair, and these companies indicated that, on average, 42% of the material in a recycled pallet is, in fact, new material. Regarding Supply Chain practices, close to three-quarters (73.1%) of respondents sold their products directly to customers and the order lead time for raw materials to shipment was 1 to 10 days for 81.9% of companies. The most important factors for purchasing decisions are availability, cost, and reliability of supplier (all rated 4.4 in an importance scale from 1 to 5, respectively). Respondents' answers suggest a preference to work with domestic materials (rated 4.3); however, respondents also indicated that there is currently a high level of competition for raw materials (rated 4.3). Results also indicated that information technology (IT) appears to receive little attention from wood pallet manufacturers, given that the importance of items in this area were rated relatively low, especially the use of internet for purchasing and training in IT (rated 2.2 and 2.1, respectively). Lastly, 86.0% of respondents did not believe that their customers would be willing to pay a premium for environmentally certified pallets, citing cost as the major barrier for a higher demand of these products. Also, a theoretical framework of supply chain management was designed, developed, and tested with factor analysis, allowing identification of seven factors in the wood pallet supply chain: (1) environmental uncertainty, (2) information technology, (3) supply chain relationships, (4) value-added process, (5) supply chain management performance, (6) business management, and (7) customer satisfaction. Relationships between factors were tested using multiple linear regression. Results show that value-added process positively affects supply chain relationships, and these in turn are positively correlated to supply chain management performance and customer satisfaction. Results from this research are useful for the industry to formulate a well-informed supply chain management strategy by understanding the connections between the different supply chain management practices and the business performance and customer satisfaction. The information presented is also useful for organizations supporting the wood pallet industry to design more effective assistance and educational programs. / Master of Science

Materials requirements planning (MRP) is a widely used method for production planning and scheduling. Planned lead-time (PLT) and lot size are two of the input parameters for MRP systems, which determine planned order release dates. Presently, planned lead-time and lot size are estimated using independent methodologies. No existing PLT estimation methods consider factors such as machine breakdown, scrap-rate, etc. Moreover, they do not consider the capacity of a shop, which changes dynamically, because the available capacity at any given time is determined by the loading of the shop at that time. The absence of such factors in calculations leads to a huge lead-time difference between the actual lead-time and PLT, i.e., lead-time error. Altering the size of a lot will have an effect not only on the lead-time of that lot but also on that of other lots. The estimation of lot size and lead-time using independent methodologies currently does not completely capture the inter-dependent nature of lead-time and lot size. In this research, a lot-sizing model is modified in such a way that it minimizes the combination of setup cost, holding cost and work-in-process cost. This proposed approach embeds an optimization routine, which is based on dynamic programming on a manufacturing system model, which is based on open queuing network theory. Then, it optimizes lot size by using realistic estimates of WIP and the lead-time of different lots simultaneously for single-product, single-level bills of material. Experiments are conducted to compare the performance of the production plans generated by applying both conventional and the proposed methods. The results show that the proposed method has great potential and it can save up to 38% of total cost and minimize lead-time error up to 72%. / Master of Science

I den tillverkande industrin ställer idag kunder krav på korta leveranstider samtidigt som de tillverkande företagen ser tid som en begränsad resurs. Detta innebär att företag tvingas fokusera på att reducera ledtiden och däribland produktionsledtiden. Vid tillverkning av kundanpassade produkter finns inte möjligheten att hålla lager för att snabbt kunna besvara kunders efterfrågan och därför måste dessa företag sträva efter att effektivisera sina processer för att reducera ledtiden. Syftet med detta examensarbete är att undersöka hur ledtiden kan reduceras i ett produktionssystem för kundanpassade produkter. Två frågeställningar har upprättats för att uppfylla syftet: 1. Vilka möjliga orsaker finns till långa ledtider i ett produktionssystem som tillverkar kundanpassade produkter? 2. Hur kan långa ledtider reduceras i ett produktionssystem som tillverkar kundanpassade produkter? För att kunna besvara dessa två frågeställningar har författarna genomfört en fallstudie samt litteraturstudier. I fallstudien har observationer, intervjuer, dokumentstudier samt en följesedel använts för att samla in empiri. Empirin har strukturerats, bl.a. i en värdeflödeskarta, och sedan analyserats mot teori som tagits fram i de litteraturstudier som genomförts. I den analys författarna genomfört har hög nivå av PIA identifierats som huvudorsak till lång ledtid. Vidare har en djupare analys bidragit till att författarna kunnat utröna underliggande orsaker till uppbyggnaden av PIA, fem i fallstudien och fyra i litteraturstudierna. De underliggande orsakerna författarna identifierade både i fallstudien och i litteraturstudierna var varierande materialflöden, pushbaserad materialstyrning, flaskhals och partiformning. Den femte identifierade orsaken i fallstudien var prioriteringsregler. Författarna har sedan tagit fram lösningsalternativ för respektive orsak och därefter diskuterat vilka lösningsalternativ som bäst kunde tillämpas i det studerade produktionssystemet. De lösningsalternativ som valts för att eliminera respektive orsak är omläggning av materialflöden för att minska variationerna, implementering av CONWIP för huvudflödet genom produktionssystemet, eliminering av flaskhals genom att tillämpa ett extra skift för denna maskin, användning av FIFO som prioriteringsregel samt tillämpning av överlappning för batcher av höga kvantiteter. Genom att tillämpa dessa förändringar anser författarna att ledtiden i det studerade produktionssystemet kan reduceras. / In the manufacturing industry today, customers require short lead times at the same time that manufacturing companies consider time as a scarce resource. This means that companies are forced to focus on reducing lead time, including production lead time. When manufacturing customized products there is not possible to keep stock to quickly answer customer demand and therefore, these companies strive to streamline their processes to reduce lead time. The purpose of this study is to examine how the lead time can be reduced in a manufacturing system for customized products. Two issues have been established to answer the purpose of this study: 1. What are the possible reasons for long lead time in a manufacturing system that produces customized products? 2. How can long lead times in a manufacturing system that produces customized products be reduced? In order to answer these two questions, the authors conducted a case study and literature reviews. In the case study observations, interviews, document studies, and a delivery note have been used to collect empirical data. The empirical data have been structured, for example in a value stream map, and then analyzed on theory developed in the conducted literature studies. In the conducted analysis the authors identified a high level of WIP as the main cause of the long lead time. Furthermore, a deeper analysis contributed by the authors have been able to determine the underlying causes for the development of WIP, in the case study five causes were identified and in the literary studies four causes. The underlying causes identified by the authors in the case study as well as in the literature studies were material flow variation, push-based material handling, bottleneck and lot sizing. The fifth identified cause in the case study was priority rules. The authors then developed optional solutions for each cause and then discussed the different solutions that could be applied in the manufacturing system the authors studied. The chosen solution for eliminating each cause is reduce diversion of material flows to reduce variability, implementation of CONWIP for the main flow through the manufacturing system, eliminating the bottleneck by applying an extra shift for this machine, using the FIFO priority rule and the application of overlapping batches of high quantities. By applying these changes, the authors consider that the lead time in the studied manufacturing system can be reduced.

A competitividade do mercado automotivo global exige que as empresas automobilísticas forneçam um fluxo contínuo de novos produtos, para manter seus níveis de market share. A capacidade de desenvolver produtos com qualidade e inovadores no mercado, transformou-se na marca do sucesso das empresas competitivas. Os especialistas identificaram o desenvolvimento de produtos neste ambiente de alta pressão, como fundamentais para a sobrevivência organizacional. Este trabalho tem como objetivo mostrar práticas que contribuem como mecanismos de ligação entre o Processo Lean de Desenvolvimento de Produtos e o sistema de fabricação fundamentada no Lean Manufacturing. A análise será feita em uma das etapas do projeto do produto, dentro de um ambiente de Engenharia Simultânea, voltada para a manufaturabilidade, utilizando mock-ups digitais. Espera-se ganhos de performance do produto no chão-de-fábrica, a redução de retrabalhos no projeto do produto, e por conseqüência uma redução do lead-time total do programa. Será utilizada uma abordagem quantitativa, com o propósito de avaliar resultados, sobre um programa de um novo veículo, tendo como fonte de dados os diários, documentos e históricos de desenvolvimento e de soluções de problemas de manufaturabilidade, em três casos específicos. Para a análise dos dados foram utilizados números comparativos entre o tempo de desenvolvimento com a aplicação da metodologia proposta e o tempo histórico com a metodologia tradicional incluindo os tempos de correções dos problemas não identificados previamente. As análises realizadas dos dados e informações obtidas indicam que as análises de manufaturabilidade através de mock-ups digitais, podem contribuir com ganhos de aproximadamente 15% no lead-time e uma redução na ordem de 1,64M nos gastos totais do programa, mostrando que as análises de manufaturabilidade, aplicadas ainda na fase embrionária do desenvolvimento do produto, em uma organização fundamentada na filosofia Lean, contribuem eficazmente em um programa para novos veículos na indústria automobilística. / The competitiveness of the global automotive market demands that car companies provide a continuous stream of new products to maintain their levels of market share. The ability to develop innovative and quality products on the market, became the hallmark of successful businesses competitive. Experts identified the development of products in this high-pressure environment as fundamental to organizational survival. This paper aims to demonstrate practices that serve as mechanisms linking the Lean Product Development Process and Manufacturing System based on Lean Manufacturing. The analysis will be done in one step from product design, within a Concurrent Engineering environment, focused on the feasibility by using digital mockups. It is expected gains in product performance on the factory floor, reducing rework in product design, and consequently a reduced lead-time total program. Will use a quantitative approach, in order to assess results on a program of a new vehicle, with the source data diaries, documents and historical development and feasibility solutions for problems in three specific cases. For the analysis of data were used comparative figures between the time of development with the proposed methodology and time history with the traditional methods including time correction of problems not previously identified. The analyzes of the data and information obtained indicates that the analysis of feasibility using digital mock-ups, can help with gains of around 15% for lead-time and a reduction in the order of 1.64 M in total expenditures of the program, showing that the analysis for feasibility, applied even at the embryonic stage of product development in an organization based on the Lean philosophy, contribute effectively in a program for new vehicles in the automotive industry.

Made available in DSpace on 2016-06-02T19:51:57Z (GMT). No. of bitstreams: 1 4714.pdf: 3301604 bytes, checksum: 9af8a72e777bb07cc110b09f14be0d8b (MD5) Previous issue date: 2012-02-29 / Project management is an ancient concept that has been studied since the 1950´s, in the cold war era, when major military projects were developed. Currently this area still has great relevance. This happens because companies can achieve their objectives of short, medium and long term through the implementation of projects. This may occur through exchange of equipment, technological change, expansion or modernization of facilities and development of new products to take advantage of opportunities identified in the market. Thus, it is vital that these projects are well managed, what can be achieved by using as main reference the PMBOK, since this guide is widely known both in the academic and professional environments. Then the time spent on project implementation can be a competitive advantage for the organization, so it is important to reduce the time needed to complete the project. So for this, the concepts and principles of QRM, which is a pragmatic approach aimed at reducing the lead time can be used. This approach is used not only on the shop-floor, but also in the administrative environment. The QRM promotes joint action with the other partners in the supply chain to reduce lead times once it become evident the holistic earned gains. From this context emerges the present work that aims to reduce the lead time in the life cycle of a project, through a proposal to integrate the QRM approach and modern project management given by the PMBOK guide. This proposal will be utilized in an illustrative case study on a project of the oil sector that is sensitive to the term. / Gerenciamento de projetos é um conceito antigo e que vem sendo estudado desde a década de 1950 no período da guerra fria, onde grandes projetos militares foram desenvolvidos. Atualmente, os projetos são vitais para as organizações, visto que, através destes, essas podem alcançar seus objetivos trocando equipamentos, alterando tecnologia, expandindo ou modernizando suas instalações e também para que sejam aproveitadas oportunidades identificadas no mercado. Dessa forma, é vital que esses projetos sejam bem gerenciados, o que pode ser auferido ao se utilizar como principal referência o PMBOK, uma vez que este é um guia amplamente conhecido tanto no ambiente acadêmico como profissional. Além disso, o prazo de implementação do projeto pode ser uma vantagem competitiva para a organização, sendo importante a redução do prazo necessário para conclusão do projeto. Para isso, utilizou-se a abordagem do QRM que visa a redução de lead time não somente no chão de fábrica, mas também no ambiente administrativo. Essa abordagem, o QRM, promove o engajamento dos outros parceiros da cadeia de abastecimento na redução de lead times, uma vez que fica evidente os ganhos holísticos auferidos por todos. A partir deste contexto, surge a presente dissertação que tem como objetivo o a redução de lead time no ciclo de vida de um projeto, através de uma proposta de integração da abordagem QRM e a moderna gestão de projetos dado pelo guia PMBOK. Esta proposta será utilizada em um estudo de caso ilustrativo em um projeto do setor de petróleo que é sensível ao prazo.

Made available in DSpace on 2016-06-02T19:51:58Z (GMT). No. of bitstreams: 1 4944.pdf: 2439121 bytes, checksum: 2f12176e338497454472f3aa726804be (MD5) Previous issue date: 2013-03-04 / Financiadora de Estudos e Projetos / Companies have been considering the responsiveness as a competitive criterion, trying to meet current market that requires simultaneously quality, efficiency, punctuality and customization. So, the lead time reduction becomes a strategic issue for the manufacturing management, considering that improvement programs on lead time reduction have been widely approached by Lean Manufacturing and Quick Response Manufacturing. Studies on improvements on shop floor parameters in order to reduce the lead time were addressed in numerous studies, such as the work of Godinho Filho and Uzsoy (2008a). Due to resource constraints existing in practice, there is a need to investigate which variable can be prioritized in the development of improvement projects, due to their potential for reducing the lead time. Therefore, this study aims to address this gap in the literature and from the business, expanding Godinho Filho and Uzsoy (2008a) work and proposing a method for selecting improvement programs aimed at reducing the lead time. To achieve this goal, we conducted a literature review, a case study on a company of the aviation industry, as well as simulations using a model created from the System Dynamics approach and Factory Physics. In addition to outlining the research question of this work, the case study aims to present to the reader an application of the method proposed. Thus, for the environment studied, i.e. a bottleneck single machine of a machining process, the result of applying the seven steps of the method was the potential improvement of 84.63% on lead time, which can be obtained with a design 1373% improvement in mean time between failures, requiring an effort of 5880 h. As an alternative to the company, a 34.76% reduction in lead time would also be possible through the investment of 1960h working for an improvement of 72% in the coefficient of variation of the repair time. / A responsividade tem sido considerada pelas empresas um critério competitivo, na tentativa de atender ao mercado atual, que exige simultaneamente qualidade, agilidade, pontualidade e customização. Assim, a redução do lead time se torna um tema estratégico para a gerência da produção, sendo que, ações de melhorias para a redução do lead time têm sido abordadas destacadamente pelo Lean Manufacturing e pelo Quick Response Manufacturing. Estudos sobre melhorias em variáveis do chão de fábrica com o objetivo de reduzir o lead time foram abordados em inúmeros estudos, como por exemplo, no trabalho de Godinho Filho e Uzsoy (2008a). Devido às restrições de recursos existentes na prática, surge a necessidade de se investigar qual variável pode ser priorizada na elaboração de projetos de melhoria, devido ao seu potencial de redução do lead time. Para tanto, o presente trabalho visa atender a essa lacuna da literatura e do meio empresarial, ampliando o trabalho de Godinho Filho e Uzsoy (2008a) e propondo um método para a seleção de programas de melhoria que objetivem a redução do lead time. Para atingir esse objetivo, foi realizada uma análise da literatura, um estudo de caso em uma empresa do setor aeronáutico, assim como simulações utilizando um modelo criado a partir das abordagens System Dynamics e Factory Physics. Além de delinear a questão de pesquisa desse trabalho, o estudo de caso visa apresentar ao leitor uma aplicação do método aqui proposto. Assim, para o ambiente estudado, ou seja, uma máquina única gargalo de um processo de usinagem, o resultado da aplicação dos sete passos do método foi a potencial melhoria de 84,63% no lead time, que pode ser obtida com um projeto de melhoria de 1373% no tempo médio entre falhas, demandando um esforço de 5880 h. Como uma alternativa para a empresa, uma redução de 34,76% no lead time também seria possível por meio do investimento de 1960h de trabalho para uma melhoria de 72% no coeficiente de variação do tempo de reparo.

The constant needs for the reduction of companies operational costs has transformed Inventory into a targeted source for this end by upper management. The high investment value that it represents for organizations, aside from the immediate contribution to cash flow, when it is reduced, allows inventory to be a source of strategic advantage. The objective of this study is to understand the behavior of independent variables such as production cycletime or lead-time, daily demand rate of finished product and the interval between production orders and their effects on the determination of an inventory policy. The study is performed in a manufacturing company that produces intermittent, repetitive small batches and a large variety of products. Cash flow techniques are applied to detail the production processes and respective planning. The historical data of mentioned variables refer to the period from January 2000 to February 2002. These data are used to develop the calculations of safety stock and average and maximum stock from the viewpoint of the management approach in Replenishment Point and Periodically Review. The real application of the data available from the company is studied to calculate the inventory policy. It is concluded that, in spite of the adoption of a sophisticated mechanism of production planning and a strong culture of measurements by the company, the statistical data of fundamental variables are not utilized systematically to determine the inventory policy. This fact confirms the thesis that inventory reductions, in general, are circumstantial and is not supported by fundamental techniques. / A constante necessidade de redução dos custos operacionais das empresas tem transformado o Inventário em fonte preferencial, para este fim, pela alta administração. O alto valor de investimento que ele representa para as organizações, além da contribuição imediata no fluxo de caixa, quando da sua redução, faz com que o inventário seja uma fonte de vantagem competitiva.O objetivo deste estudo é compreender o comportamento das variáveis independentes como tempo de ciclo da produção ou lead-time, taxa diária de demanda do item de produto acabado e tempo de intervalo entre ordens de produção, e os seus efeitos no cálculo de uma política de inventário.O estudo é realizado em uma empresa de manufatura de produção intermitente repetitiva em lotes de pequenas quantidades e grande variedade de produtos.Técnicas de fluxo de valor são aplicadas para detalhamento dos processos de produção e do seu respectivo planejamento. Os dados históricos das variáveis mencionadas referem-se ao período de janeiro de 2000 a fevereiro de 2002. Com estes dados, desenvolvem-se os cálculos de estoque de segurança, estoque médio e máximo,sob a óptica das abordagens de gerenciamento por Ponto de Reposição e Revisão Periódica. Analisa-se a real aplicação dos dados disponíveis na empresa, para o cálculo da política de inventário. Conclui-se que apesar de ser adotado mecanismo sofisticado de planejamento de produção e haver uma forte cultura de medições por parte da empresa, os dados estatísticos das variáveis fundamentais não são utilizados de forma sistemática para o cálculo da política de inventário. Este fato confirma a tese de que as reduções de inventário, de uma maneira geral, são circunstanciais e não sustentadas por fundamentos técnicos.

Purpose - The purpose of this study is to investigate potential for and cost related impact of internal lead time reduction through coordination between materials supply and a production activity of customer-order-unique products. In order to achieve the purpose two questions are answered; 1. How can with respect to sourcing strategy, coordination between materials supply and production activity of customer-order-unique products be achieved? 2. How does a coordination affect cost items in related areas of the business? Method – Based on literature in the area of materials supply a theoretical framework for the study was established. The company JELD-WEN, an industrial manufacturer with customer-order-unique-production of fire- and safety-doors was used for a case study. Data collection was performed through interviews, observations and document studies. A comparison between the theoretical framework and empirical data generated the final results. Findings – Using a hybrid sourcing strategy, changes in materials supply through an internal call-off together with the materials feeding method kitting proves potential to reduce the internal lead time in the manufacturing process. An economic impact of such coordination with a production activity has been found for three cost items; handling cost (increase), administrative order cost (increase/decrease) and inventory carrying cost (increase/decrease). Implications – The study does not contribute to new theory in the field. Instead existing theory and relations defined in the theoretical framework have been verified by the case study. Internal lead time reduction identified in the study may be used in other ways than by the means of an improved customer offer. This can be done through sharing time to other time-exposed activities in the manufacturing process or as an additional safety time for finished products to secure company's delivery accuracy. Therefore, in a decision situation for change affected cost items should be assessed in contrast to the more indirect value of a lead time reduction. Limitations – Modifications of materials supply occurs in a context where conditions outside the unit of analysis plays a crucial role and thereby limits the possible usage of the potential lead time reduction. The study handles impact of cost items in a general direction (increase or decrease). Absolute terms contribute to more precise consequences and are probably necessary to support a company's final financial decision of using an alternative approach in materials supply.