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Totalcycletimereduction Abusinessachievetotalcustomersatissfactionwhenitsworkforce Istrainedandempoweredtoconcurrentlyapplytotalcycletimereductiontoolsandqulityimprovementtoolswithincross functionalteamsEmbracesacontinuousimprovementprocesswhichsupportsmeasurementsandrewardsconsistentwithchangeobjectivesthatadjusttocustomerneeds Totalcycletime Totalycletimeistheactualtimethatpassesfromthetimeacustomerexpressesaneeduntilthecustomer sneedissatisfied Customerrequest Product serviceForcustomer Totalcycletimereduction acompetitivetool ResponsivenesstomarketandcustomerneedsReducedcostImprovedprofitsImprovedtotalcustomersatisfactionIncreasesassetutilization Businessevolvesovertime AtfirstagoodprocessisestablishedBuesinessneedsgraduallychangetheprocess Thechangesarenotalwaysforthebettter Everyonetiestodotheirbestbuttheprocessevolvestothecurrentstate Probablyfewpeoplehavelookedatthecompleteprocessfromstarttofinish Ifwearetoimprove wemustcompletelyunderstandwhatwedoandhowwedoitthenwewilldiscoverhowtodoitbetter AsIsThepresentlevelofperformanceatwhichabusinessprocessorfunctionisoperatingShouldBeAlevelofperformancethatabusinesscanachieveusingcurrentresourcesCouldBeAlevelofperformancethatcantbeachievedthroughthestrategicadditionofnewresourcesIssuesProblems disconnects and oropportunitiesforimprovement missing unnecessary orpoorlyperformingsteps Totalcycletimeterms Greastperformanceimprovementachievedwithpresentresources Couldbe Shouldbe Asis time 9 12months Withadditionresources Withpresentresource Businessperformance FlowchartSequentialflowofasimpleprocessRelationshipmapDiagramshowthepiecesofasysteminterrelatewithinanorganizationCross functionalprocessmapDiagramsthespecificstepstakentoaccomplishatask organizedbywhichfunctionisresponsibleforthestepIncludestimerequiredtoperformeachstep Mappingisusedtodiagnosecycletimeproblems Processflowchart Relationshipmappingforanybusiness Product Designs Services Finance Mkt Sales NewProduct Service Suppliers Mfg OrderFulfillment MarketPlace Personnel Capital Revenues Budgets Promotions Leads Product ServiceIdeas Orders RawMaterials Resources HumanResources Product Technology Assumptions basicresearchcomplete model accessoriesdecided Approximate tospend caravailableatdealer Driveandarriveatdealer customer salesperson Salesmanager Businessmanager Cycletime Researchonnewcar BrowseCars Dicusscaroptions Dicussprice 2H48H 1H 3H Salespersonapproachescustomer Pullinformationoncar Asismappurchasingacar 是 Gotomanagerforaproval Makeanoffer 20M 2H Discussoffer Discusscounteroffer Reachagreement Reviewoffer Presentcounteroffer vanish B A no Accept yes Asismappurchasingacar cont customer salesperson Salesmanager Businessmanager Cycletime A Takecustomertobusinessmanager yes no 15M 1H Accept B Offeraccepted Gotobussinessmanageer Gobacktosales Checkoutnewcar Driveofflot 5M 30M Meetcustomer Filloutforms Filloutforms Gobacktosales Totalcycletime 3H40M 54H30M Asismappurchasingacar cont customer salesperson Salesmanager Businessmanager Cycletime Getnameofdealer salesperson pricefrominternet 20M 1H Reseachcarinfo Oninternet 10M 20M Totalcycletime 45M 2h20m Reciveprofileofcustomer Gotodealer Contratsalesperson Closedeal Recallcust Profilefromsystem Leavelot CompletePaperwork Checkoutnewcar 15M 1H customer salesperson Salesmanager Businessmanager Cycletime Shouldbepurchasingacar Majorprocesscgangestakesabout12month Teamactivity Ongoinginvolvementofchampion sponsorandsteeringcommittee 39 52weeks Identifytheprocessandplantheproject 4weeksPart time Asis Session 3 5days Involveother swithmapandissues 3 5weeksPart time Shouldbe Session 3 5days ActionitemTeamsDevelopPlans 3 5weeksPart time DetailedDesignandimplentation 7 10months Cross functionalprocessmapping 1 2 3 4 5 1 2 4 5 Asis cycletime shouldbe cycletime Removedwaste ReducecycletimeEliminatewasterWasteiseverythingotherthantheabsoluteminimumresourcesofmaterial machinesandworkforcesrequiredtoaddcaluetotheproductAllnon valueaddedactivityisconsideredwasteIncreaseeffectivenessofcurrentactivities SimplifytheprocessReducecostFindhecausesoferrorsandeliminateRedefinetheprocesscurrentlybeingused Whycross functionalprocessmapping Choosetheprocesstobemaped OneofyourcriticalprocessAprocessthatcrossestheorganizationAprocessthatisintroubleOneofthekeyprocessesAprocesstoserveasa TestBed Choosethechampion steeringcommittee GuideandmonitortheactivityRemoveroadblocksKeepseniormanagementinformedofstatusofCTRCommunicatetoallemployeestheeffectivenessandstatusoftheCTREncouragetheteamInsurefrequentmeetingsareheldMntortheactionitemowners Selectacross functionalmappingteam doers whoareinvolvedineverystepoftheprocess 85 90 oftheteam RepresentativesofallmanagementlevlesRepresentativesofalllocationsinvolvedintheprocessesChoosefromthebestemployees keepers Teamsizefrom8to75 Empower securetheteam limitcapitalinvestment SeniormanagementallowstheteamtoimplementtheiraolutionsRegularmanagementreviewsAllteammembers positionwiththecompanyareassurediftheirfunctioniseliminatedNoadditionalcapitalNoadditionalpeople Choosetwooutsidefacilitators TwofacilitataosrequiredUsetrainedfacilitatorsSomeoneimpartialNotinvolovedintheprocess Conductthe asis session Usually3to5continuousdaysMajoroutputDefineissues60 Buildtheteam20 Understandthecompleteprocess15 Developthemap5 Reviewwithothers ShowthemaptomanypeopleintheorganizationCoveralltheissueswithasmanyassociatesaspossibleSolicitadditionalissuesfromothersBuildenthusiasmtofix improvetheprocessCollectideasfortheshouldbeObtainbuy inofthechangeprocess Usually3to5continuousdaysMajoroutputDevelopasetofactionitem40 Transferownershipoftheprocesstothosewhodothework30 Developapictureoftheshouldbe15 Establishmentofchangeagentsatyurcompany15 Developtheshouldbemap vision Incorporateprojecmanagementtraining DevelopprojectobjectivestatementIdentifydeliverablesDevelopflexibilitymatrix workbreakdownstructureEstablishscheduleandganttchartCreatriskmanagementplanMonitorprojecttoschedule anychangefromasiatotheshouldberequireanactionitemAteammemberbecomestheactionitemownerActionitemsarespreadaroundsoeachteammemberhasatleastoneTypically30to60actionitemsThesumoftheactionitemsistheactionplanFulltimeteamleadermanagertheimplementation Prepareactionplan EachactionitemownerLeadsthesubteamChoosetheteammembersEstablishestheactionplanwithhisteamManagersallstagesoftheteamsactivitythroughimplementation Teammemberleadtheactionitem AssociatesoutsideoftheteamarerecruitedtoparticipateTypically100 250additionlapeoplegotinvolvedBuildsexcitementtoseeithappen Othersintheorganizationareaskedtoassist MostcriticalaspectRunbytheteamleaderMininumofmonthlymeetingsEncourageasmanyotherstoparticipateImplementactionitemsInstitutionalizethe shouldbe process Implementactionplan eachactionitemtobemeasurableEstablishmeasurementpointsBeginmeasuringShowactualversusshouldbegoalIfprogressdoesnotoccurdeterminewhyandfix Measureresults Re mapevery18 30monthsSpreadawarenessthroughtrainingSenjormanagementcontinuedinterestandattentionRewardandrecongnitionshouldtietoCTR Continuousimprovement industry steps ValueAddedSteps PercentStepsValueadded ValueAddedTime glass tableware food ingredientprocess textile yarnmfg weaving metal wheelcylinder electronics cableassy Consumerproducts disp Razor Mfg support orderentry 723710518423910598 641114191015 8 11 10 8 8 10 15 1 1 1 1 1 1 1 Value addedactivitylistsevenindustries Formanufacturing 65 70 reductionForadministraticeandservicefunctions 80 95 reduction Typicalexperienceintotalcycletimereduction Cycletimereductionhasmanybenefits MotorolaPagers 40days Lessthan1hour 1987closing 3s9daysApril1990closing 5s4daysJune1992closing 6s2daysHitabrickwallPresentobjectivecloseondemand Motorolafinancialclosing Cycletime Totalprocurementcycletime Totaldelinquenciestocustomerrequest 0 6 12 18 24 30 36 42 48 54 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 10 20 30 40 50 60 70 80 90 100 Delinquent96 Shipped 96Ship Totalmanufacturingcycletime 0 2 4 6 8 10 12 14 16 1
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