There are several key concepts in the Lean toolbox that are intended to simultaneously constrain materials without sacrificing manufacturing flexibility, such as SMED, Kanban, and Just-in-Time inventory. There are also other powerful Lean strategies that, while lesser known, offer additional advantage in stewarding bloated production costs regarding inventory. No toolkit would truly be complete without a firm understanding of Delayed Permanence and the benefits it offers.
Delayed Permanence is the deliberate act of holding off on the transformation of material – keeping it in more flexible and configurable forms – until the last possible moment. We do this in case of unexpected demand or design changes. For once that product or component is committed to a customer, there is significant risk that it could be refused for a variety of reasons. Minimizing that risk, and the cost it represents, is the objective of Delayed Permanence.
Admittedly, Delayed Permanence isn’t a standalone concept. Rather it is an important consideration under the greater umbrella of Design for Manufacturing, but one that might be overlooked and underutilized. For example, the idea of Delayed Permanence often helps justify Point-of-Use manufacturing cells, particularly when components are bespoke, delicate, or physically difficult to manipulate. We don’t want to risk damaging such items by handling them multiple times unnecessarily.
Resisting committing a part to be painted a specific color is one example of Delayed Permanence in production. Once it shines in Candle-Apple Red, there are limited opportunities to mate it with other similarly painted components on the assembly line. But clever designers are refusing to accept this paint paradigm at all. Slate electric trucks, for example, have designed all their vehicle exteriors in a flat grey plastic pushing the final stage of customization directly onto the customer. They’ve even included open-source wrapping programs to make the coloring process simple.
The idea of Delayed Permanence in the form of customer configurability is taking off, particularly in software-integrated product platforms. Cell phones may be among the best examples of how customers can customize the look, feel, and operation of their devices to match their ever-shifting moods. Personal digital assistants and simple automations make these functional customizations truly limitless.
How does the notion of Delayed Permanence actually benefit the manufacturer? In several ways. First, delaying until later when a specific part is committed to an order reduces cost risk associated with obsolescence, damage, or sudden fluctuating customer demand. We already covered that. If that part remains in a less sophisticated form (by color, hole placement, treatment, etc.) it is more readily able to be repurposed as a different part or to a different order, without adding any additional effort. Rework is expensive. So is scrap.
Second, purposefully delaying the point at which the commitment happens necessitates examination of the value stream, applying positive pressure to steadily compress effective lead-time. Critical analysis brings strategic trade-offs to light that would otherwise go unconsidered. While evaluating these trade-offs, we are able to intervene with reason and further innovate to bring the whole system more in line with strategic objectives. No analysis yields no change for the better.
Also, and maybe most importantly, utilizing Delayed Permanence means that fewer actual components are needed throughout the supply chain to support production. By postponing finality of the component, one uncommitted piece can satisfy the demands of several more matured variants. This approach can radically reduce and simplify materials in the supply chain.
Think like a quality restaurant. Until they know what the customer actually wants, they keep all their ingredients in the most versatile form possible, and yet serve you in an expeditious way. Once something is cut or combined, there’s no turning back.
Lean in, and Lean on.