cycle time

Cycle-time reduction

FICCI CE

• All organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required."

• To meet customer demands it is highly important to meet customer demand at right time in right quantity at right price i.e, reduce lead time days.

Scenario

FICCI CE


Long cycle-times not only prevent prompt delivery of product/

service to your customers, but also increase costs. One of the best ways to cut down on your cycle-time is to conduct activities in parallel and eliminate unnecessary waste times.

FICCI CE

• Lead Time : Time between the initiation and delivery of a work item (this includes the Cycle Time) Cycle Time: Time between two successive deliveries of work items in the process(this includes the Process Time)

FICCI CE

• Lets take an example of Security Check-In at the Airport: (a) Suppose you arrive at the check point and have stood in a queue at 1100 hrs (assuming there couple of passengers ahead of you) and you are through with the security check with your hand baggage and boarding card duly stamped at 1125 hrs. The LEAD TIME is 25 min.

(b) Now say, the passenger just ahead of you completes security check 1117 hrs and later you are through with the security check at 1125 hrs. The CYCLE TIME is 8 mins.

FICCI CE

• cycle time is compared with task time.

• Lead time y compared with commitment of delivery

FICCI CE

• In a complete JOB , Process or any start to end the different stages are refer to a cycle

• Lead time = completion of a job e.g making a car its order asembling paint ,tyre ckd fitng is cycles and a customer get it after one month it is the lead time

FICCI CE

• Lead time is typically used to specify how long the delivery of a piece of equipment will take from purchase order to delivery.

• Lead Time is linear, how long it takes to get from one place to another or to do something.

• Cycle Time is circular, the time between doing something once then doing it again later.

•.

FICCI CE

• Lead time= cycle time Xwip

FICCI CE

Broadly speaking, an organization competes on the basis of quality, cost, flexibility and time. Today's discriminating customer demands world-class quality at a competitive price. When all the leading companies in an industry have achieved a high level of quality, a focus on quality alone cannot keep a company competitive.


FICCI CE

Quality then becomes a common expected factor, which must be complemented by a faster response time and flexibility. Increasingly, cost and quality are viewed as residuals or outcomes of competing on the basis of time and flexibility.


FICCI CE

In business, time is not infinite and limitless. Competing on the basis of time is defined to include the following:

using time as a strategic weapon

identifying market opportunities

responding to those opportunities before competitors do and

eliminating non-value-added activities.


FICCI CE

Fast-cycle capability contributes to better performance across the board.

Costs drop because production materials and overhead do not accumulate as work-in-process inventory.

Customer service improves because the lead-time from receipt of order to shipment diminishes.

Quality is higher because the production cycle overall cannot speed up unless everything is done right the first time.


FICCI CE

Time advantage is also an organizational capability - a level of performance that management shapes and builds into the company.

The basic idea is to build on organizational operating systems that perform without the bottlenecks, delays, errors and inventories most companies live with.

The faster that information, decisions and materials can flow through a large organization, the faster the growth and development.


FICCI CE

In summary, time-advantaged companies enjoy one or more of the following benefits, relative to their peers: increased productivity; pricing flexibility; reduced risks; reduced costs and increased response capability.


1. Activities Performed in serial

2. Activities performed in parallel

cycle time

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