Time-Based Competition - Cycle Time Reduction

Cycle Time Reduction begins with a concern for customer service. The faster an organization can meet customer needs, the better customers like it. Cycle time brings surprising benefits in cost and quality as well. This becomes clearer when one considers that the most cost-effective and highest quality way to do any job is to do it once, right, and then to hand it to the customer. Not only do post-process inspection, in-process storage, and repetitious work elements slow down customer service, they also contribute to waste, low quality, excessive working capital, and high cost.  Stanton Group cycle time reduction tools were pioneered in manufacturing areas where the time required to convert a customer order into revenue is a key determinant of corporate success. They range in complexity from straightforward event lists to Critical Path Method (CPM) modeling to computer simulation of workflow or business activities. Generally speaking, we try to use the simplest tool that will do the job. Typical project output includes the following: A list of "quick hitters," opportunities to quickly improve operations with little or no investment Suggestions for fast, simple scheduling approaches, including physical controls wherever possible A set of facility and/or organization reorganization recommendations to streamline the flow of information and/or product A list of technological opportunities for further improving speed and other performance areas A set of parameters for upgrading of data systems, as appropriate In both private and public sectors, time really is money. Staff salaries and most indirect costs are much more directly linked to the passage of time than to the production of work. Therefore, the faster work can be made to progress through the organization, the more likely it is that the organization will be making good use of human and financial resources.

See also: Data System Alignment Business Process Reengineering

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