Manufacturing cells reduce travel distance between machines and inventory; they
can also have a dramatic effect on lead time. For example, in a traditional manufacturing
system, one company took two months to manufacture a valve. By grouping the
lathes and drills used to make the valves into U-shaped cells, the lead time was reduced
to two or three days. A chain saw manufacturer was able to reduce travel distance from
2,620 feet to 173 feet and lead times from 21 days to three. Because of the reduced
lead time and plans for even further reduction, the company will be filling orders directly
from the factory rather than from finished goods warehouses.7 These reductions
in lead time are not unique—most companies experience at least a 90 percent reduction
in lead times when they implement JIT