Totalcycletimereduction.ppt

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 teams Embraces a continuous improvement process which supports measuremen

2、ts 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.,Customer request,Product/service For customer,Total cycle time reduction- a

3、competitive tool,Responsiveness to market and customer needs Reduced cost Improved profits Improved total customer satisfaction Increases asset utilization,Business evolves over time,At first a good process is established Buesiness needs gradually change the process. The changes are not always for t

4、he bettter. 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 it then we will discover how to do it better.,As Is The p

5、resent level of performance at which a business process or function is operating Should Be A level of performance that a business can achieve using current resources Could Be A level of performance that cant be achieved through the strategic addition of new resources Issues Problems,disconnects,and/

6、or opportunities for 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 chart Sequential f

7、low of a simple process Relationship map Diagrams how the pieces of a system interrelate within an organization Cross-functional process map Diagrams the specific steps taken to accomplish a task,organized by which function is responsible for the step Includes time required to perform each step,Mapp

8、ing is used to diagnose cycle time problems,Process flow chart,Relationship mapping for any business,Product,Designs/ Services,Finance,Mkt/ Sales,New Product /Service,Suppliers,Mfg./Order Fulfillment,Market Place,Personnel,Capital,Revenues,Budgets,Promotions,Leads,Product/Service Ideas,Orders,Raw Ma

9、terials/ Resources,Human Resources,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,Browse Cars,Dicuss car

10、options,Dicuss price,2H 48H,1H 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 purchasin

11、g a car(cont.),customer,salesperson,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

12、cycle time = 3H40M - 54H 30M,As 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,Cont

13、rat sales person,Close deal,Recall cust. Profile from system,Leave lot,Complete Paper 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/spons

14、or and steering committee,39-52 weeks, Identify the process and plan the project,4 weeks Part-time, “As is” Session,3-5 days, Involve others with map and issues,3-5 weeks Part-time, “Should be” Session,3-5 days, Action item Teams Develop Plans,3-5 weeks Part-time, Detailed Design and implentation,7-

15、10 months,Cross-functional process mapping,1,2,3,4,5,1,2,4,5,“As is” cycle time,“should be” cycle time,Removed waste,Reduce cycle time Eliminate waster Waste is everything other than the absolute minimum resources of material,machines and workforces required to add calue to the product All non-value

16、 added activity is considered waste Increase effectiveness of current activities. Simplify the process Reduce cost Find he causes of errors and eliminate Redefine the process currently being used.,Why cross-functional process mapping,Choose the process to be maped,One of your critical process A proc

17、ess that crosses the organization A process that is in trouble One of the key processes A process to serve as a “Test Bed”,Choose the champion & steering committee,Guide and monitor the activity Remove roadblocks Keep senior management informed of status of CTR Communicate to all employees the effec

18、tiveness and status of the CTR Encourage the team Insure frequent meetings are held Mntor the action item owners,Select a cross-functional mapping team,“doers” who are involved in every step of the process(85 - 90% of the team) Representatives of all management levles Representatives of all location

19、s involved in the processes Choose from the best employees(keepers) Team size from 8 to 75,Empower,secure the team & limit capital investment,Senior management allows the team to implement their aolutions Regular management reviews All team members position with the company are assured if their func

20、tion is eliminated No additional capital No additional people,Choose two outside facilitators,Two facilitataos required Use trained facilitators Someone impartial Not involoved in the process,Conduct the “as is” session,Usually 3 to 5 continuous days Major output Define issues60% Build the team 20%

21、Understand the complete process15% Develop the map 5%,Review with others,Show the map to many people in the organization Cover all the issues with as many associates as possible Solicit additional issues from others Build enthusiasm to fix/improve the process Collect ideas for the should be Obtain b

22、uy-in of the change process,Usually 3 to 5 continuous days Major output Develop a set of action item 40% Transfer ownership of the process to those who do the work30% Develop a picture of the should be15% Establishment of change agents at yur company 15%,Develop the should be map(vision),Incorporate

23、 projec management training,Develop project objective statement Identify deliverables Develop flexibility matrix & work breakdown structure Establish schedule and gantt chart Creat risk management plan Monitor project to schedule,any change from as ia to th e should be require an action item A team

24、member becomes the action item owner Action items are spread around so each team member has at least one Typically 30 to 60 action items The sum of the action items is the action plan Full time team leader manager the implementation,Prepare action plan,Each action item owner Leads the sub team Choos

25、e the team members Establishes the action plan with his team Managers all stages of the teams activity through implementation,Team member lead the action item,Associates outside of the team are recruited to participate Typically 100-250 additionla people got involved Builds excitement to see it happ

26、en,Others in the organization are asked to assist,Most critical aspect Run by the team leader Mininum of monthly meetings Encourage as many others to participate Implement action items Institutionalize the “should be”process,Implement action plan,each action item to be measurable Establish measureme

27、nt points Begin measuring Show actual versus should be goal If progress does not occur determine why and fix,Measure results,Re-map every 18-30 months Spread awareness through training Senjor management continued interest and attention Reward and recongnition should tie to CTR,Continuous improvement

28、,industry,steps,Value Added Steps,Percent Steps Value added,Value Added Time,glass (tableware) food (ingredient process) textile (yarn mfg. & weaving) metal (wheel cylinder) electronics(cable assy.) Consumer products (disp. Razor) Mfg. support (order entry),72 37 105 184 239 105 98,6 4 11 14 19 10 1

29、5,8% 11% 10% 8% 8% 10% 15%,1% 1% 1% 1% 1% 1% 1%,Value-added activity list seven industries,For manufacturing： 65-70% reduction For administratice and service functions: 80-95% reduction,Typical experience in total cycle time reduction,Cycle time reductionhas many benefits,Motorola Pagers,40 days,Les

30、s than 1 hour,1987 closing 3s 9 days April 1990 closing 5s 4 days June 1992 closing 6s 2 days Hit a brick wall Present objective close on demand,Motorola financial closing,Cycle time,Total procurement cycle time,Total delinquencies to customer request,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,Delinquent 96,Shipped,96 Ship,Total manufacturing cycle time,0,2,4,6,8,10,12,1