Which statement is true about batch size, lead time, and utilization?

A. Higher team member utilization leads to longer lead times

B. There is no direct relationship between lead time and utilization

C. As batch size increases, lead time decreases

D. There is no direct relationship between lead time and batch size

Correct Answer is

A. Higher team member utilization leads to longer lead times

Explanation

The statement that is true about batch size, lead time, and utilization is: Higher team member utilization leads to longer lead times.

Why this statement is correct and the others are not

• Higher team member utilization leads to longer lead times: This statement is true based on the principles of Lean and queueing theory. When team members (or resources in a process) are utilized to their maximum capacity, there’s little to no buffer for handling variability or unexpected work. This can cause work to pile up, leading to longer queues and, consequently, longer lead times. High utilization rates can reduce flexibility and increase the time it takes to complete tasks because any new or unexpected work has to wait for available capacity.


• There is no direct relationship between lead time and utilization: This statement is incorrect. There is a well-established relationship between lead time and utilization, as explained above. The higher the utilization, the longer the lead time due to the increased likelihood of bottlenecks and queueing.


• As batch size increases, lead time decreases: This statement is generally false. Increasing batch size tends to increase lead times. Large batches take longer to process and move through a system, increasing the lead time. Additionally, large batches can cause delays as they wait for processing to start (since starting a larger batch often requires more preparation) and can block other work from being completed. Lean principles advocate for smaller batch sizes to reduce lead time and increase flow through a system.


• There is no direct relationship between lead time and batch size: This statement is also incorrect. There is a direct relationship; larger batches typically result in longer lead times due to the reasons mentioned. Smaller batches are processed and moved through the system more quickly, reducing lead times and increasing responsiveness.

In summary, understanding the relationship between these factors is crucial for optimizing workflows, reducing waste, and improving delivery times in any process or production system.

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