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

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