| Definition |
Cycle Time Reduction decreases the time it takes a company to perform key activities throughout its value chain. Cycle Time Reduction uses analytical techniques to minimise waiting time, eliminate non-value-adding activities, increase parallel activities and speed up the decision making processes within an organisation. Time-based strategies often emphasise flexible manufacturing, rapid response and innovation in order to attract the most profitable customers. Reducing cycle times can:
- Lower the total cost of products and services by improving productivity
- Enable a company to shorten lead times to customers
- Give a company the ability to support more product changes over a shorter period of time
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| Implementation |
Efforts are directed toward reducing the overall time it takes from conception to delivery of products and services. The methodology focuses on three primary areas within a business:
- New product development:
Cycle Time Reduction utilises cross-functional teams to decrease the time it takes to develop a new product, from concept to market introduction. Key decision makers from each traditional functional area are involved from the beginning of the development process. Shorter development cycles improve the odds of marketplace success through faster responses to changing customer needs.
- Operations:
Cycle Time Reduction minimises complexity, streamlines the process and decreases run lengths. This allows the organisation to eliminate bottlenecks and decrease unproductive waiting time in the process. In service operations, this tool speeds up work flows and decision making throughout the organisation.
- Delivery and logistics:
Cycle time techniques decrease the time required and increase the predictability in fulfilling orders. This is accomplished by providing a framework to eliminate unnecessary work and to speed up decision making.
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| Purpose |
Cycle Time Reduction is used to:
- Increase productivity
- Increase profit margins of products or services
- Better meet changing customer needs through shortened product development cycles
- Gain market share
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