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1、Total cycle time Total cycle time reductionreductionA business achieve total customer A business achieve total customer satissfaction when its workforcesatissfaction when its workforceTotal cycle time reductionTotal cycle time reduction- - a a competitive toolcompetitive tool Responsiveness to marke
2、t and customer needs Reduced cost Improved profits Improved total customer satisfaction Increases asset utilizationBusiness evolves over timeAt first a good process is establishedAt first a good process is establishedBuesiness needs gradually change the Buesiness needs gradually change the process.p
3、rocess.The changes are not always for the bettter.The changes are not always for the bettter.Everyone ties to do their best but the Everyone ties to do their best but the process evolves to the current cess evolves to the current state.Probably few people have looked at the Probably few peo
4、ple have looked at the complete process from start to plete process from start to finish.If we are to improve we must completely understandwe must completely understand what we dowhat we do a andnd h how we do itow we do itt then we will discoverhen we will discover how to do it better.how to do it
5、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 using current resources Could Be A level of performance that cant be achieved through the strategic addition of new resources Issues Proble
6、ms,disconnects,and/or opportunities for improvement (missing,unnecessary,or poorly performing steps).Total cycle time termsTotal cycle time termsGreast performance improvementachieved with present resourcesCould beShould beAs istime9-12 monthsWith addition resourcesWith present resourceBusiness perf
7、ormanceFlow chartFlow chartSequential flow of a simple processSequential flow of a simple processRelationship mapRelationship mapDiagrams how the pieces of a system Diagrams how the pieces of a system interrelate within an organizationinterrelate within an organizationCross-functional process mapCro
8、ss-functional process mapDiagrams the specific steps taken to Diagrams the specific steps taken to accomplish a task,organized by which accomplish a task,organized by which function is responsible for the stepfunction is responsible for the stepIncludes time required to perform each stepIncludes tim
9、e required to perform each stepMapping is used to diagnose cycle time Mapping is used to diagnose cycle time problemsproblemsProcess flow chartWalk inDoorWait inLineFill OutFormGive FormtoCounterReceiveFormGive FormtoGarageWait untilReadyDrive CarintoGarageStartDrive CarOn LiftRaiseLiftHaveContainer
10、s?SelectContainerDrainOilLowerLiftCallWarehouseDeliverContainersYesNoHaveCorrectOil?Put in OilGive Formto CounterDrive Carto ParkingLotCallWarehouseDeliverOilYesCollectMoneyCorrectChange?YesPick upCarDriveAwayExitMake ChangeNoRelationship mapping for any businessProductDesigns/ServicesFinanceMkt/Sal
11、esNew Product/ServiceSuppliersMfg./Order FulfillmentDistributionMarketPlacePersonnelCapitalRevenuesBudgetsPromotionsLeadsProduct/Service IdeasOrdersRaw Materials/ResourcesHuman ResourcesProductTechnologyAs is map purchasing a carBAyesAs is map purchasing a car(cont.)ATake customer to business manage
12、ryesno15M 1HAccept?BOffer acceptedGo to bussiness manageerGoback to salesCheck out new carDrive off lot5M 30MMeet customerFill out formsFill out formsGo back to sales = 3H40M - 54H 30MAs is map purchasing a car(cont. )20M 1H10M 20M= 45M 2h 20m15M 1HShould be purchasing a carTeam activity Ongoing inv
13、olvement of champion/sponsor and steering committeengoing involvement of champion/sponsor and steering committee39-52 weeks Identify the process and plan the project4 weeksPart-time “As is” “As is” SessionSession3-5 days Involve Involve others withothers withmap andmap andissuesissues 3-5 weeksPart-
14、time “Should be” Should be” SessionSession3-5 days Action item TeamsDevelopPlans3-5 weeksPart-time Detailed Design andimplentation7-10 monthsCross-functional process mapping“As is” cycle timeReduce cycle timeReduce cycle timeEliminate wasterEliminate wasterWaste is everything other than the absolute
15、 minimum resources of Waste is everything other than the absolute minimum resources of material,machines and workforces required to add calue to the material,machines and workforces required to add calue to the productproductAll non-value added activity is considered wasteAll non-value added activit
16、y is considered wasteIncrease effectiveness of current activities.Increase effectiveness of current activities.Simplify the processSimplify the processReduce costReduce costFind he causes of errors and eliminateFind he causes of errors and eliminateRedefine the process currently being used.Redefine
17、the process currently being used.Why cross-functional process mappingiGuide and monitor the activityiRemove roadblocksiKeep senior management informed of status of CTRiCommunicate to all employees the effectiveness and status of the CTRiEncourage the teamiInsure frequent meetings are heldiMntor the
18、action item ownersEmpower,secure the team & limit capital investmentChoose 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
19、 20% 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 Obta
20、in buy-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 work 30% Develop a picture of the should be15% Establishment of change agents at yur company 15% Develop the should be Develop the should
21、 be map(vision)map(vision)Incorporate 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 sho
22、uld be require an action itemA team member becomes the action 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 planImplement action
23、plan each action item to be measurableeach action item to be measurable Establish measurement points Establish measurement points Begin measuring Begin measuring Show actual versus should be goal Show actual versus should be goal If progress does not occur determine If progress does not occur determ
24、ine why and fixwhy 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 improvementValue-added activity list seven industries For manufacturing:65-70% reduction For ad
25、ministratice and service functions: 80-95% reductionTypical experience in total cycle time reductionCycle time reductionhas many benefitsMotorola Pagers40 daysLess than 1 hour1987 closing 3s s 9 days daysApril 1990 closing 5s s 4 days daysJune 1992 closing 6s s 2 days daysHit a brick wallHit a brick
26、 wallPresent objective close on demandPresent objective close on demandMotorola financial closingMotorola financial closingCycle timeTotal procurement cycle timeTotal procurement cycle timeTotal delinquencies to customer requestTotal delinquencies to customer request06121824303642485460Jan.Feb.Mar.A
27、pr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.0102030405060708090100Delinquent 96 Shipped96 ShipTotal manufacturing cycle timeTotal manufacturing cycle time02468101214161820Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.Total customer cycle timeTotal 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 driven fr
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