Cycle time: Product

Techniques to cycle time reduction are numerous (Andel, 1994, pp. 95-102). Most cycle time reduction programs are closely tied to an organization's high quality improvement system (Catlow & Cryer, 1995, pp. 28-29). Thus, cycle time reduction isn't an isolated activity within an organization. The methods to cycle time reduction discussed in this look for are significant; however, other worthwhile techniques also are described from the literature.

Cycle Time Reduction Through An Emphasis on Loops

Global competitiveness is forcing firms of all sizes to go to ever-greater lengths to increase client satisfaction (Northey & Southway, 1993, pp. 11-12). Organizations that focus on cycle time like a productivity measure, can each decrease delivery time and enhance quality, thereby generating a much more satisfied customer. An organization's total business-cycle time is measured "from the time a customer's need is known to receipt of payment from that consumer to your finished product" (pp. 11-12).

Total business-cycle time within an organization includes any or all the right after sub cycles or loops (Northey & Southway, pp. 11-12). The make/ship loop will be the time from receipt of material, from the value-adding conversion steps, to shipment or transfer of the finished item for the distribution loop. The distribution loop. The time from finished production to shipment to the client in the distribution warehouse.

"Although the offer loop is a significant contributor to the total organization cycle time, most companies are powerless to force suppliers to reduce their cycle times" (Northey & Southway, pp. 11-12). Only the largest companies, "have had sufficient clout to insist that their material be delivered 'just-in-time'" (pp. 11-12). In these kinds of conditions, the "objective for most corporations will be to make certain the stability of material deliveries by encouraging the supplier's efforts to increase quality" (pp. 11-12).

As forecast periods were extended, the potential for error and disagreement increased (Northey & Southway, pp. 11-12). A double difficulty arose for people firms whose competitors could deliver the appropriate product inside a shorter cycle time. The shorter cycle time meant that competitors could produce at lower price and did not require such large inventories. "Not only were the slower organizations struggling to compete, but they had been faced with margin issues caused by the greater costs of inventory and waste inside the structure" (pp. 11-12). The reaction of some manufacturers was to reduce inventories. Competitors with shorter cycle times, however, continued to improve marketplace share.

American Normal has 78 plants worldwide, and "at least 63 of people plants have at least one demand-flow line in operation" (Barrier, pp. 30-31). Of the company's 32,000 employees, close to half were trained in demand flow. The very first step in converting a plant to demand-flow principles, is to analyze the existing flow, to see as soon as importance is getting added on the product. "Typically, you will discover that 90 percent of the time, nothing is happening on the product" (pp. 30-31).

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