Case 01
Accepting a quieter machine to keep a different customer promise
In 2023, our planning review showed a recurring problem with smaller component orders. They were accepted commercially, but the factory sequence repeatedly moved them behind longer runs. The local utilisation report looked strong. The customer account was less satisfactory. I asked planning and commercial colleagues to identify the requirements that the preferred sequence was systematically postponing, rather than treat each late order as a separate exception requiring another urgent intervention.
We reserved forty-two machine hours per week for that work during a ten-week trial in a defined production area. The arrangement cost JPY 24 million in additional setups, planning support and operating expense. Production managers objected that it would lower the utilisation measure on which the area had been judged. They were right: the reported figure moved from 86% in the comparison period to 79% during the trial. I supported making that reduction explicit rather than redesigning the measure to hide the consequence of my decision.
The selected customer measure improved. Seventy-three of one hundred orders in the earlier comparison cohort had met their original promised dates; eighty-eight of a separate hundred-order cohort did so in the trial account. These were different order populations of equal size, not the same orders measured twice or a controlled experiment. We kept the product-area boundary and the original dates visible. The result did not prove that reserved hours alone caused every improvement, and it did not establish a company-wide service outcome.
The decision gave management a concrete trade-off to examine: a lower local utilisation figure and higher expense alongside a stronger selected delivery result. Some colleagues still preferred the former arrangement because it produced more continuous runs. Commercial colleagues valued the clearer provision for commitments already made to smaller customers. We retained the approach for that area with continuing review, rather than impose the same reservation across every plant. I would now ask how the proposed order mix fits the production measure before the commercial promise is accepted. A factory should not have to discover through repeated escalation that its definition of efficiency excludes part of the business it has agreed to serve.