Facility layout is extremely important to the success of a new product launch. The facility design directly affects efficiency, productivity, and the quality of the finished goods. In addition to labor, equipment, and material needs, L.L. Bean’s management should also examine process cycle time versus takt time, all while looking to apply principles of lean management to their new product launch. The process cycle time measures how long it takes to assemble the product from start to finish, whereas takt time is calculated once we know how many units need to be produced to meet demand and when the deadline is for delivery (Pereira, 2010). Considering a modern day automobile can be produced on an assembly line in around 90 minutes (100 …show more content…
To estimate takt time for that purpose, management would simply need to know how many units are on order, and how quickly those intermediaries want their orders fulfilled. However, in this case the product is being manufactured to sell in our own retail channels, so we need to estimate the ultimate consumer demand within all our markets. L.L. Bean has 37 retail and outlet stores plus the flagship store in Freeport within the United States. Additionally there are international stores and outlets, as well as the catalog and on-line business. I discovered an item similar to the proposed product for launch called Biolite. It has fewer features, but has been globally marketed and was launched in 2013, with “thousands of units sold” (BioLite to speak at USAID Millennium Development Goal Countdown as example of emerging market success as HomeStove impact grows , 2014) over the span of a year after launch. Based on that information, takt time is estimated at 5,000 units in a year. Using these estimates, takt time falls well within L.L. Bean’s process cycle time. Several possible bottlenecks could adversely affect the cycle time. Being reliant upon suppliers for the raw materials to use in the manufacturing process is a potential issue. Late deliveries, or possible input and raw material shortages would at a minimum stall, or could halt all production. This is a distinct possibility since the product involves highly technological solar harnessing units, and components to convert solar power and combustion into