Order the long-lead part before the design is finished.

Problem

Everything else was ready. The compressor was not, and no amount of engineering effort shortened a 22-week queue at a supplier who had never heard of the company.

Context

A solar cold-storage unit for market traders. Six-person team, first production run of 40 units, working backwards from a harvest season that does not move.

What they did

1. 1.Built a lead-time list before the bill of materials was complete, ordered by weeks rather than by cost.
2. 2.Placed a deposit on 40 compressors against a specification that was still 80% settled.
3. 3.Designed the housing around the compressor that was coming rather than the one that was ideal.
4. 4.Negotiated a partial-cancellation clause instead of trying to delay the order.

What to avoid

• •The 22-week figure was the supplier's standard quote and turned out to be 31 weeks for a first-time buyer, which nobody asked about.
• •Committing early to the compressor forced two housing changes that cost less than the delay would have, but were not free.

Sources

• Lead-time register, first production runSahel Cold Systems

Related lessons

• Qualify the second supplier before you need one.→