1 Total Business Consulting Group, Inc. REDUCING EFFORT/TIME Chabot College Engineering October 11, 2012 2 Total Business Consulting Group, Inc. AGENDA What is Cycle Time? Why do it? Mini exercise Conclusion 3 Total Business Consulting Group, Inc. EXRECISE NUMBERS To be handed out by instructor 4 Total Business Consulting Group, Inc. Defining Cycle Time All work is a process Couple a good employee to a poor process ….. And the process will win every time!!!!! Total Business Consulting Group, Inc. 5 You Don’t Understand My Business All work is a process Inputs – Activities – Outputs Fundamental rules apply Customer needs Quality Availability Flexibility Price Waste element management Excessive cycle times Non –value added Resource consumption 6 Total Business Consulting Group, Inc. Types of Cycle Times Administrative & Manufacturing I + P = O Commonality Administrative (service, paper) Function of a bank loan – What is done? ________________________________ ________________________________ ________________________________ 7 Total Business Consulting Group, Inc. Types of Cycle Times (continued) Manufacturing “LEAD TIME” APICS definition: span of time required to perform a process Consists of five elements: 8 Queue time Preparation time Processing time Wait time Move time Total Business Consulting Group, Inc. Customer Focused Cycle Time The broader perspective of cycle time Functional View Individual, operational, departments Separate from the whole Systems View Identification and management of relationships Between each process step Irrespective of functional or organizational Purpose: to optimize the management of critical interactions Especially when steps cross functional/dept. borders 9 Total Business Consulting Group, Inc. Typical Organizations Organize work Sequence of separate tasks Tracking mechanism for status Structurally it is disaggregated Into narrowly defined tasks Next reaggregated people Into departments Finally installed managers To administer Total Business Consulting Group, Inc. 10 ALL WORK IS A PROCESS Feedback INPUTS: Resources (people, $, time) PROCESS (activity) Feed Forward 11 Total Business Consulting Group, Inc. OUTPUTS: Result (product, service) Total Cycle Time Management Requires analysis of each step in the process Who does what? When is it done? How is it done? Why is it done? Where do the inputs come from? Where do the outputs go? What are the requirements of each? 12 Total Business Consulting Group, Inc. Understanding the Common Goals Efforts that need to be done Review activities in a “systems view” Analyze findings Change Use tools – strategic plan link, quality systems & problem solving Train and practice Communicate progress/results All levels Total Business Consulting Group, Inc. 13 Benefits of Total Cycle Time Management Link operator to Strategic Plan Identify what is REALLY HAPPENING Isolate functional interfaces Value added, disconnects, bottlenecks, etc.. Use tools Reduced TIME/EFFORT Improved quality and lower cost Market responsive and ID necessary changes Better view of company’s capability & processes 14 Total Business Consulting Group, Inc. WHY DO IT? Think like the customer! Who are they? What do they want? What do we provide? How can we improve their satisfaction? In what is provided How we perform Total Business Consulting Group, Inc. 15 For Each Process, ASK: Who is the customer? What is the customer want from the output of the process? When do they want it? What do they do with it? What is the difference between what is provided vs. what is expected? How do you get this? 16 Total Business Consulting Group, Inc. Four Competitive Attributes Cost - lowest cost Lowest price Quality - customer’s needs Availability - shortest and most reliable Flexibility - ability to respond quickly to customer needs Winner Total Business Consulting Group, Inc. 17 18 Total Business Consulting Group, Inc.