Total cycle time reduction

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1、Total cycle time reduction,A business achieve total customer satissfaction when its workforce,Is trained and empowered to concurrently apply total cycle time reduction tools and qulity improvement tools within cross-functional teamsEmbraces a continuous improvement process which supports measurement

2、s and rewards consistent with change objectives that adjust to customer needs,Total cycle time,Total ycle time is the actual time that passes from the time a customer expresses a need until the customers need is satisfied.,Customerrequest,Product/serviceForcustomer,Total cycle time reduction- a comp

3、etitive tool,Responsiveness to market and customer needsReduced costImproved profitsImproved total customer satisfactionIncreases asset utilization,Business evolves over time,At first a good process is establishedBuesiness needs gradually change the process.The changes are not always for the bettter

4、.Everyone ties to do their best but the process evolves to the current state.Probably few people have looked at the complete process from start to finish.,If we are to improve,we must completely understand what we do and how we do itthen we will discover how to do it better.,As IsThe present level o

5、f performance at which a business process or function is operatingShould BeA level of performance that a business can achieve using current resourcesCould BeA level of performance that cant be achieved through the strategic addition of new resourcesIssues Problems,disconnects,and/or opportunities fo

6、r improvement (missing,unnecessary,or poorly performing steps).,Total cycle time terms,Greast performance improvementachieved with present resources,Could be,Should be,As is,time,9-12 months,With addition resources,With present resource,Business performance,Flow chartSequential flow of a simple proc

7、essRelationship mapDiagrams how the pieces of a system interrelate within an organizationCross-functional process mapDiagrams the specific steps taken to accomplish a task,organized by which function is responsible for the stepIncludes time required to perform each step,Mapping is used to diagnose c

8、ycle time problems,Process flow chart,Relationship mapping for any business,Product,Designs/Services,Finance,Mkt/Sales,New Product/Service,Suppliers,Mfg./Order Fulfillment,MarketPlace,Personnel,Capital,Revenues,Budgets,Promotions,Leads,Product/Service Ideas,Orders,Raw Materials/Resources,Human Resou

9、rces,Product,Technology,Assumptions:basic research complete.model & accessories decided. Approximate $ to spend.car available at dealer.,Drive and arrive at dealer,customer,salesperson,Sales manager,Business manager,Cycle time,Research on new car,BrowseCars,Dicuss car options,Dicuss price,2H 48H,1H

10、3H,Sales person approaches customer,Pull information on car,As is map purchasing a car,是,Go to manager for a proval,Make an offer,20M 2H,Discuss offer,Discuss counter offer,Reach agreement,Review offer,Present counter offer,vanish,B,A,no,Accept?,yes,As is map purchasing a car(cont.),customer,salespe

11、rson,Sales manager,Business manager,Cycle time,A,Take customer to business manager,yes,no,15M 1H,Accept?,B,Offer accepted,Go to bussiness manageer,Goback to sales,Check out new car,Drive off lot,5M 30M,Meet customer,Fill out forms,Fill out forms,Go back to sales,Total cycle time = 3H40M - 54H 30M,As

12、 is map purchasing a car(cont. ),customer,salesperson,Sales manager,Business manager,Cycle time,Get name of dealer.sales person & price from internet,20M 1H,Reseach car info. On internet,10M 20M,Total cycle time = 45M 2h 20m,Recive profile of customer,Go to dealer,Contrat sales person,Close deal,Rec

13、all cust.Profile from system,Leave lot,CompletePaper work,Check out new car,15M 1H,customer,salesperson,Sales manager,Business manager,Cycle time,Should be purchasing a car,Major process cganges takes about 12 month,Team activity,Ongoing involvement of champion/sponsor and steering committee,39-52 w

14、eeks, Identify the process and plan the project,4 weeksPart-time, “As is” Session,3-5 days, Involve others withmap andissues,3-5 weeksPart-time, “Should be” Session,3-5 days, Action item TeamsDevelopPlans,3-5 weeksPart-time, Detailed Design andimplentation,7-10 months,Cross-functional process mappin

15、g,1,2,3,4,5,1,2,4,5,“As is” cycle time,“should be” cycle time,Removed waste,Reduce cycle timeEliminate wasterWaste is everything other than the absolute minimum resources of material,machines and workforces required to add calue to the productAll non-value added activity is considered wasteIncrease effectiveness of current activities.Simplify the processReduce costFind he causes of errors and eliminateRedefine the process currently being used.,

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