Speed-ups: Logistics and Profitability

Abstract

This chapter examines the logistics of speed-ups in complex production environments—that is, environments where there are numerous sub-processes which require coordination. This is followed by a look at the profitability of speed-ups, complete with numerical examples. It is shown that speed-ups are among the most profitable investments that a firm can make, owing in large measure to the fact that they utilize existing facilities and supervision.