1、Total cycle time reductionA business achieve total customer satissfaction when its workforce Is trained and empowered to concurrently apply Is trained and empowered to concurrently apply total cycle time reduction tools and qulity total cycle time reduction tools and qulity improvement tools within
2、crossfunctional teamsimprovement tools within crossfunctional teams Embraces a continuous improvement process Embraces a continuous improvement process which supports measurements and rewards which supports measurements and rewards consistent with change objectives that adjust to consistent with cha
3、nge objectives that adjust to customer needscustomer needsTotal cycle timeTotal cycle timeTotal ycle time is the actual time that passes from Total ycle time is the actual time that passes from the time a customer expresses a need until the the time a customer expresses a need until the customers ne
4、ed is satisfied.customers need is satisfied.CustomerCustomerr requestequestProduct/serviceProduct/serviceForForc customerustomerTotal cycle time reduction- a competitive tool Responsiveness to market and customer needs Reduced cost Improved profits Improved total customer satisfaction Increases asse
5、t utilizationBusiness evolves over time At first a good process is established Buesiness needs gradually change the process. The changes are not always for the bettter. Everyone ties to do their best but the process evolves to the current state. Probably few people have looked at the complete proces
6、s from start to finish.If we are to improve we must completely understand what we do and how we do itthen we will discover how to do it better. As Is The present level of performance at which a business process or function is operating Should Be A level of performance that a business can achieve usi
7、ng current resources Could Be A level of performance that cant be achieved through the strategic addition of new resources Issues Problems,disconnects,and/or opportunities for improvement (missing,unnecessary,or poorly performing steps).Total cycle time termsGreast performance improvementachieved wi
8、th present resourcesCould beShould beAs istime9-12 monthsWith addition resourcesWith present resourceBusiness performanceFlow chartSequential flow of a simple processRelationship mapDiagrams how the pieces of a system interrelate within an organizationCrossfunctional process mapDiagrams the specific
9、 steps taken to accomplish a task,organized by which function is responsible for the stepIncludes time required to perform each stepMapping is used to diagnose cycle time problemsProcess flow chartWalk inDoorWait inLineFill OutFormGive FormtoCounterReceiveFormGive FormtoGarageWait untilReadyDrive Ca
10、rintoGarageStartDrive CarOn LiftRaiseLiftHaveContainers?SelectContainerDrainOilLowerLiftCallWarehouseDeliverContainersYesNoHaveCorrectOil?Put in OilGive Formto CounterDrive Carto ParkingLotCallWarehouseDeliverOilYesCollectMoneyCorrectChange?YesPick upCarDriveAwayExitMake ChangeNoRelationship mapping
11、 for any businessProductDesigns/ServicesFinanceMkt/SalesNew Product/ServiceSuppliersMfg./Order FulfillmentDistributionMarketPlacePersonnelCapitalRevenuesBudgetsPromotionsLeadsProduct/Service IdeasOrdersRaw Materials/ResourcesHuman ResourcesProductTechnologyAssumptions:basic research complete.model &
12、 accessories Assumptions:basic research complete.model & accessories decided. Approximate $ to spend.car available at dealer.decided. Approximate $ to spend.car available at dealer.Drive and arrive Drive and arrive at dealerat dealercustomercustomersalespersonsalespersonSales managerSales managerBus
13、iness managerBusiness managerCycle timeCycle timeResearch on Research on new carnew carBrowseBrowseCarsCars Dicuss Dicuss car car optionsoptionsDicuss Dicuss priceprice2 2H 48HH 48H1 1H 3HH 3HSales person Sales person approaches approaches customercustomerPull Pull information information on caron c
14、ar As is map purchasing a car是是是是Go to Go to manager manager for a for a provalprovalMake an offerMake an offer2020M 2HM 2HDiscusDiscuss offers offerDiscuss Discuss counter counter offerofferReach Reach agreementagreementReview Review offerofferPresent Present counter counter offeroffervanishvanishB
15、AnonoAccept?Accept?yesAs is map purchasing a car(cont.)customercustomersalespersonsalespersonSales managerSales managerBusiness managerBusiness managerCycle timeCycle timeATake customer to business manageryesno15M 1HAccept?BOffer acceptedGo to bussiness manageerGoback to salesCheck out new carDrive
16、off lot5M 30MMeet customerFill out formsFill out formsGo back to salesTotal cycle timeTotal cycle time = 3H40M - 54H 30MAs is map purchasing a car(cont. )customercustomersalespersonsalespersonSales managerSales managerBusiness managerBusiness managerCycle timeCycle timeGet name of Get name of dealer
17、.sales dealer.sales person & person & price from price from internetinternet20M 1HReseach Reseach car info.car info. On internet On internet10M 20MTotal cycle time Total cycle time = 45M 2h 20mRecive profile of Recive profile of customercustomerGo to Go to dealerdealerContrat Contrat sales sales per
18、sonpersonClose Close dealdealRecall cust.Recall cust.Profile from Profile from systemsystemLeave Leave lotlotComplCompleteetePaper Paper workworkCheck Check out out new new carcar15M 1HcustomercustomersalespersonsalespersonSales managerSales managerBusiness managerBusiness managerCycle timeCycle tim
19、eShould be purchasing a carMajor process cganges takes Major process cganges takes about 12 monthabout 12 monthTeam activity Ongoing involvement of champion/sponsor and steering committee39-52 weeks Identify the process and plan the project4 weeksPart-time “As is” Session3-5 days Involve others with
20、map andissues 3-5 weeksPart-time “Should be” Session3-5 days Action item TeamsDevelopPlans3-5 weeksPart-time Detailed Design andimplentation7-10 monthsCross-functional process mapping1 12 23 34 45 51 12 24 45 5“As is” cycle time“ “should be” should be” cycle timecycle timeRemoved wasteRemoved wasteR
21、educe cycle timeEliminate 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 added activity is considered wasteIncrease effectiveness of current activities.Simplify the processReduce costFind he
22、causes of errors and eliminateRedefine the process currently being used.Why cross-functional process mappingChoose the process to be mapedChoose the process to be maped One of your critical processOne of your critical process A process that crosses the organizationA process that crosses the organiza
23、tion A process that is in troubleA process that is in trouble One of the key processesOne of the key processes A process to serve as a “Test Bed”A process to serve as a “Test Bed”Choose the champion & steering committeeChoose the champion & steering committeeiGuide and monitor the activityiRemove ro
24、adblocksiKeep senior management informed of status of CTRiCommunicate to all employees the effectiveness and status of the CTRiEncourage the teamiInsure frequent meetings are heldiMntor the action item ownersSelect a cross-functional mapping teamSelect a cross-functional mapping team “ “doers” who a
25、re involved in every step of doers” who are involved in every step of the process(the process(85 - 90%85 - 90% of the team)of the team) Representatives of all management levlesRepresentatives of all management levles Representatives of all locations involved Representatives of all locations involved
26、 in the processesin the processes Choose from the best employees(keepers)Choose from the best employees(keepers) Team size from 8 to 75Team size from 8 to 75Empower,secure the team & limit capital investment Senior management allows the team to Senior management allows the team to implement their ao
27、lutionsimplement their aolutions Regular management reviewsRegular management reviews All team members position with the All team members position with the company are assured if their function is company are assured if their function is eliminatedeliminated No additional capitalNo additional capita
28、l No additional peopleNo additional peopleChoose two outside facilitators Two facilitataos required Use trained facilitators Someone impartial Not involoved in the processConduct the “as is” session Usually 3 to 5 continuous days Major output Define issues60% Build the team 20% Understand the comple
29、te 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 buy-in of the change pr
30、ocess 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 work 30% Develop a picture of the should be15% Establishment of change agents at yur company 15% Develop the should be map(vision)Incorporate projec management tra
31、ining 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 itemA team member becomes the acti
32、on item ownerAction items are spread around so each team member has at least oneTypically 30 to 60 action itemsThe sum of the action items is the action planFull time team leader manager the implementationPrepare action plan Each action item ownerEach action item owner Leads the sub teamLeads the su
33、b team Choose the team membersChoose the team members Establishes the action plan with his Establishes the action plan with his teamteam Managers all stages of the teams Managers all stages of the teams activity through implementationactivity through implementationTeam member lead the action itemTea
34、m member lead the action item Associates outside of the team are Associates outside of the team are recruited to participaterecruited to participate Typically 100-250 additionla people got Typically 100-250 additionla people got involvedinvolved Builds excitement to see it happenBuilds excitement to
35、 see it happenOthers in the organization are asked Others in the organization are asked to assistto assist Most critical aspectMost critical aspect Run by the team leaderRun by the team leader Mininum of monthly meetingsMininum of monthly meetings Encourage as many others to Encourage as many others
36、 to participateparticipate Implement action itemsImplement action items Institutionalize the “should be”processInstitutionalize the “should be”processImplement action plan each action item to be measurable Establish measurement points Begin measuring Show actual versus should be goal If progress doe
37、s not occur determine why and fixMeasure results Re-map every 18-30 months Spread awareness through training Senjor management continued interest and attention Reward and recongnition should tie to CTRContinuous improvementindustryindustrystepsstepsValueValueAddedAddedSteps Steps PercentPercentSteps
38、StepsValueValueaddedaddedValueValueAddedAddedTime Time glass (tableware)glass (tableware)food (ingredient process)food (ingredient process)textile (yarn mfg. & weaving)textile (yarn mfg. & weaving)metal (wheel cylinder)metal (wheel cylinder)electronics(cable assy.)electronics(cable assy.)Consumer pr
39、oducts (disp. Razor)Consumer products (disp. Razor)Mfg. support (order entry)Mfg. support (order entry) 72 72 37 37105105184184239239105105 98 98 6 6 4 411111414191910101515 8% 8%11%11%10%10% 8% 8% 8% 8%10%10%15%15%1%1%1%1%1%1%1%1%1%1%1%1%1%1%Value-added activity list seven industries For manufactur
40、ing：65-70% reduction For administratice and service functions: 80-95% reductionTypical experience in total cycle time reductionCycle time reductionhas many benefitsMotorola Pagers40 daysLess than 1 hour1987 closing 3s 9 daysApril 1990 closing 5s 4 daysJune 1992 closing 6s 2 daysHit a brick wallPrese
41、nt objective close on demandMotorola financial closingCycle timeTotal procurement cycle timeTotal delinquencies to customer request06121824303642485460Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.0102030405060708090100Delinquent 96 Shipped96 ShipTotal manufacturing cycle time02468101214161820Jan.F
42、eb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.Total customer cycle time05101520253035404550Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.actualgoal0102030405060708090 100Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.daysDecilinquent ordersdaysdaysactualgoalactualgoalactualgoalCulture change must be dr
43、iven from the top Topdown commitment and involvement Set the example,be active in the audit process Measurement system to track progress At both macro and micro level Common wellunderstood set of metrics Tough goal setting(Reach out!) Provide the required education Spread the success story Recognize
44、 and reward those who contributedMotorolas lessons learned Introduce quality improvement and total cycle time reduction efforts concurrently and not as separate “programs” Tie corportate initiaives to total customer satisfaction Link all toolsno separate “cannonballs ” . take a systems approach. Tell the workforce “why”Q & A
