manage themselves and have ownership of the entire process within the cell Specialized Workers to a Cross-trained Workforce: Workers need to be trained to perform multiple tasks Efficiency/Utilization Goals to Lead Time Reduction: To support this new structure, companies must replace cost-based goals of efficiency and utilization with the overarching goal of lead time reduction QRM Cell The main building block of the QRM organization is the QRM cell. Extending the concept of cellular manufacturing, QRM cells are designed around a Focused Target Market Segment (FTMS) – a segment of the market in which shorter product lead times provide the company with maximum benefits. Resources in a cell are dedicated (only to be used for jobs in the cell), collocated (located in close proximity to each other) and multifunctional (cover different functions). QRM cells complete a sequence of operations ensuring that jobs leave the cell completed and do not need to return. The work organization in QRM cells is based on team ownership. Provided with a job and a completion deadline, teams can decide independently on how to complete the job. To ensure quick response to high-variety demand, workers in QRM cells need to go through cross training. The main performance measure for a QRM cell is lead time as defined by MCT. To measure MCT reduction, managers can use the QRM number, a metric designed to show management lead time trends for cells. System Dynamics In QRM, the product-focused cell structure has to be complemented by a thorough understanding of system dynamics in order to make better decisions to reduce lead times. Based on principles of system dynamics, QRM identifies high utilization of machines and labor as well as running large batch sizes as major obstacles to lead time reduction. Create spare capacity Many cost-based organizations aim for machines and labor to be utilized at close to 100% of capacity. QRM criticizes this approach as counterproductive to lead time reduction based on queuing theory, which shows that high utilization increases waiting times for products. In order to be able to handle high variability in demand and products, QRM advises companies to operate at 80 percent capacity on critical resources. Optimize batch sizes Common efficiency measures encourage production of parts in large batch sizes. From the QRM perspective, large batch sizes lead to long waiting times, high WIP and inventory, and ultimately long lead times. Long lead times in turn