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Totalcycletimereduction,Abusinessachievetotalcustomersatissfactionwhenitsworkforce,Istrainedandempoweredtoconcurrentlyapplytotalcycletimereductiontoolsandqulityimprovementtoolswithincross-functionalteamsEmbracesacontinuousimprovementprocesswhichsupportsmeasurementsandrewardsconsistentwithchangeobjectivesthatadjusttocustomerneeds,Totalcycletime,Totalycletimeistheactualtimethatpassesfromthetimeacustomerexpressesaneeduntilthecustomersneedissatisfied.,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,1H3H,Salespersonapproachescustomer,Pullinformationoncar,Asismappurchasingacar,是,Gotomanagerforaproval,Makeanoffer,20M2H,Discussoffer,Discusscounteroffer,Reachagreement,Reviewoffer,Presentcounteroffer,vanish,B,A,no,Accept?,yes,Asismappurchasingacar(cont.),customer,salesperson,Salesmanager,Businessmanager,Cycletime,A,Takecustomertobusinessmanager,yes,no,15M1H,Accept?,B,Offeraccepted,Gotobussinessmanageer,Gobacktosales,Checkoutnewcar,Driveofflot,5M30M,Meetcustomer,Filloutforms,Filloutforms,Gobacktosales,Totalcycletime=3H40M-54H30M,Asismappurchasingacar(cont.),customer,salesperson,Salesmanager,Businessmanager,Cycletime,Getnameofdealer.salesperson&pricefrominternet,20M1H,Reseachcarinfo.Oninternet,10M20M,Totalcycletime=45M2h20m,Reciveprofileofcustomer,Gotodealer,Contratsalesperson,Closedeal,Recallcust.Profilefromsystem,Leavelot,CompletePaperwork,Checkoutnewcar,15M1H,customer,salesperson,Salesmanager,Businessmanager,Cycletime,Shouldbepurchasingacar,Majorprocesscgangestakesabout12month,Teamactivity,Ongoinginvolvementofchampion/sponsorandsteeringcommittee,39-52weeks,Identifytheprocessandplantheproject,4weeksPart-time,“Asis”Session,3-5days,Involveotherswithmapandissues,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,SeniormanagementallowstheteamtoimplementtheiraolutionsRegularmanagementreviewsAllteammemberspositionwiththecompanyareassurediftheirfunctioniseliminatedNoadditionalcapitalNoadditionalpeople,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,1987closing3s9daysApril1990closing5s4daysJune1992closing6s2daysHitabrickwallPresentobjectivecloseondemand,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,0,2,4,6,8,10,12,14,16,18,20,Jan.,Feb.,Mar.,Apr.,May
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