Operations Notes – Time-Based Competition


Notes from core MBA Operations class, these focused on time-based competition.
Subject: Operations

Refers to cycle time (sometimes synonymous with throughput time), waiting time, run time, rush order throughput time, throughput/lead time

Also referred to as:

  • Time-to-market
  • Time-to-money
  • Project completion time

Time is becoming more important because:

  • many companies have caught up on quality
  • because of new technology enablers
  • changing lifestyles
  • it aids in indirect attacks

Competing on time requires a thorough understanding of the value addition process and a desire to change
Target is a moving target and the advantages are difficult to sustain

Companies become time-based competitors by:
1st fixing manufacturing techniques
2nd fixing sales & distribution (takes as much or more time than manufacturing)
3rd adjusting approach to innovation

Managers should:

  • create an imperative for action by quantifying the effect of time on profitability
  • revamp the reward system to bring time into the picture
  • benefit from available methods to compete on time

Elements of time-based competition:

  • Eliminate tasks
  • Consolidate tasks
  • Simplify tasks
  • Overlap tasks (do activities in parallel)
  • Optimize tasks

Time-based mfg differs from traditional mfg by:

  • Length of process runs
  • Organization of process components
  • Complexity of scheduling procedures

Like this content? Why not share it?
Share on FacebookTweet about this on TwitterShare on LinkedInBuffer this pagePin on PinterestShare on Redditshare on TumblrShare on StumbleUpon

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.