In part one and two of our continuous improvement series, we explored the foundations of a continuous improvement mindset and how to effectively identify and solve recurring problems.

Resolving problems is only one piece of the puzzle, though. The next step is redesigning your processes to prevent those issues from coming back.

In Part 3, we'll focus on the tactical tools manufacturers can use to streamline operations, reduce lead times, and cut waste. This blog dives into practical methods that turn improvement goals into measurable outcomes.

Here's what we'll explore:

• How Value Stream Mapping reveals inefficiencies
• The link between lead time and overall cost
• Push vs. pull systems, and why choosing the right one matters
• The power of quick changeovers (SMED) and smaller batch sizes
• How flexible workcells can enhance flow and communication
• Tools like standard work and visual controls that help maintain progress

Let's start by looking at the often-overlooked connection between lead time and cost.

Why Lead Time and Cost are Deeply Connected

As you move forward with continuous improvement, you may ask whether to focus first on cutting lead time or reducing costs. Fortunately, you don't have to choose because the two are closely linked.

Consider this quote from Henry Ford:

"One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost."

How Lead Time Impacts Cost

In manufacturing, lead time acts as a hidden cost driver. The longer it takes for a product to go from raw material to finished good, the more inefficiencies accumulate:

• Longer wait times lead to more work-in-progress (WIP) inventory
• Excess movement raises handling, transport, and rework risks
• Shipping delays tie up cash flow and postpone revenue
• Constant firefighting limits the time available for real improvements.

Every moment a product sits idle adds costs without adding value, and over time, that adds up. Reducing lead time isn't just about speed; it's a powerful way to lower expenses and boost overall efficiency.

How to Identify Waste with Stream Value Mapping

To reduce lead times effectively, you need a clear picture of where your time is going, and where it's being wasted. That's where Value Stream Mapping (VSM) comes in.

VSM charts the flow of materials and information from the moment a customer places an order to when the product is delivered. It captures every step, both value-adding and non-value adding, and helps you pinpoint delays, inefficiencies, and waste.

Start with the Current State

Begin mapping how your process works today. Focus on:

• Measuring value-added (VA) vs. non-value-added (NVA) time
• Spotting key sources of waste like excess inventory, unnecessary movement, or rework

Design the Future State

With the current state mapped, you can now plan an improved future process using the PDCA cycle (see Part 2 for details). Ask:

• What should the ideal process look like?
• Can handoffs be reduced or combined?
• Which steps could be streamlined, removed, or automated?

Think of VSM as your improvement roadmap, a tool for visualizing today's reality and aligning your team around a smarter, more efficient tomorrow.

Four Practical Ways to Reduce Lead Time

Once you've mapped your current and future state, next step is taking action. Here are four proven methods manufacturers can use right away to start cutting lead times:

1. Reconfigure Your Layout

Many shops are set up by function, machines in one area, assembly in another, inspection in a third. While this seems efficient, it often forces products to zigzag through the facility, creating delays.

A better approach is to group by product families, items that follow similar process steps. Then ask:

• Can we arrange equipment and teams around specific product flows?
• Can related processes be placed closer together?

This shift leads to smoother flow, reduced travel, and fewer work-in-progress (WIP) bottlenecks.

2. Push vs. Pull: Shift from Forecasting to Real Demand

Traditional "push" systems rely on production schedules and forecasts, building based on expected demand. While common, this often leads to overproduction, excess inventory, and long wait times between steps.

A "pull" system, however, responds to actual customer demand. Each downstream actively signals when to start upstream work, keeping production tightly aligned with real needs.

In short:

• Push = Forecast-driven, schedule-heavy, and waste-prone
• Pull = Demand-driven, flexible, and lean

Even moving part of your workflow from push to pull can shorten lead times and improve operational agility.

3. Cut Batch Sizes for Faster Flow

Large batch sizes slow everything down. When only one part is being processed, the rest sit idle, adding lead time and tying up space.

Smaller batches = faster movement through your system.

However, making this change stick requires reducing setup times, which brings us to our next strategy.

4. Speed Up Changeovers with SMED

Single-Minute Exchange of Die (SMED) is a method for reducing setup time, ideally to under ten minutes. Faster changeovers support smaller batches, increase flexibility, and make better use of your equipment.

In many facilities, changeover time breaks down to something similar as shown:

• 30%: Prepping tools and materials
• 5%: Physically mounting and removing tools
• 15%: Adjusting settings and calibrations
• 50%: Trial runs and fine-tuning

By organizing materials, standardizing processes, and cross-training staff, most manufacturers can cut setup time dramatically, often by half or more on the first attempt.

Designing Effective Workcells

After reducing setup times and enabling smaller batch production, the next step is to optimize how work physically moves through your space — and that’s where workcells come into play.

A workcell groups together the equipment, materials, and people needed to produce a specific product or product family. During Value Stream Mapping, you'll identify these product families — which may include dissimilar items that follow similar process steps. The goal is to support one-piece flow by minimizing delays, handoffs, and unnecessary movement.

Why Workcells Matter

Workcells are especially effective for manufacturers shifting away from traditional assembly lines or department-based layouts. They offer:

• Faster production with reduced motion and inventory buildup
• Smoother communication and collaboration between operators
• Increased flexibility through cross-training and role sharing

The Power of the U-Shape

One of the most effective configurations is a U-shaped workcell, where operators work inside the “U” and materials are stocked from the outside. This design supports:

• Quick assistance and seamless role coverage among team members
• Improved visibility of work-in-progress
• Easy adjustments and real-time teamwork
• Separation of material handling from core processing

Even in high-mix, low-volume environments, workcells help simplify complexity and create consistent, streamlined workflows for core product types.

With your layout aligned, the next step is to lock in improvements by standardizing work practices.

Make Improvements Last: Standard Work and Visual Management

A great improvement is only valuable if it sticks. Without consistent reinforcement, even the best changes can fade — old habits return, processes drift, and lead times increase. That’s why standard work and visual management are critical to sustaining progress.

Standard Work: Define the Best Known Method

Standard work documents the most efficient and reliable way to perform a task. It creates consistency while leaving room for future improvements. Once a new method is tested and proven better, the standard is updated — but until then, it’s followed by all.

Helpful tools for standardizing work include:

• TWI Job Methods – Break tasks down into key steps and identify the safest, fastest way to perform them
• Setup cards and checklists – Ensure repeatability during changeovers and daily operations
• Clear roles and responsibilities – So everyone knows what they own and when to escalate issues

Visual Management: Keep Progress in Sight

When key information is visible, problems are easier to spot and solve. Visual tools give teams and leaders instant insight into performance and process health.

Examples include:

• Real-time production boards displayed on the floor
• Color-coded systems for inventory, materials, or equipment status
• Shadow boards and visual cues to maintain order and reduce waste

To reinforce both systems, combine visual management with leader standard work — regular check-ins, coaching, and follow-ups that provide structure and keep improvements on track long-term.

How Manufacture Nevada Can Help

From value stream mapping and process layout changes to pull systems, SMED, and workcells, the goal is to create faster, leaner, and more responsive operations. Sustain those improvements through standard work, visual management, and structured leadership routines. Continuous improvement isn’t a one-time event — it’s a mindset. Each gain becomes the new baseline. Each future state becomes the next current state.

If you’re looking for guidance on how to apply these continuous improvement principles to your operation, Manufacture Nevada is ready to help.

Content from this blog is sourced from CMTC.