Operations Notes – Time-Based Competition

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:
1^st fixing manufacturing techniques
2^nd fixing sales & distribution (takes as much or more time than manufacturing)
3^rd 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