Totalcycletimereduction.ppt

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1、A 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 market and customer needs Reduced cost Improved profits I

2、mproved 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.process.The changes are not always for the bettter.Th

3、e 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 state.process evolves to the current state.Probably few people have looked at the Probably few people have looked at the complete process from start t

4、o 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 better. As Is The present level of performance at wh

5、ich 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/or opportunities for improvement

6、(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 performanceFlow chartFlow chartSequential flow of a simp

7、le 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 mapCross-functional process mapDiagrams the specific steps

8、 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 time required to perform each stepMapping is used to di

9、agnose cycle time Mapping is used to diagnose cycle time problemsproblemsProcess flow chartWalk inDoorWait inLineFill OutFormGive FormtoCounterReceiveFormGive FormtoGarageWait untilReadyDrive CarintoGarageStartDrive CarOn LiftRaiseLiftHaveContainers?SelectContainerDrainOilLowerLiftCallWarehouseDeliv

10、erContainersYesNoHaveCorrectOil?Put in OilGive Formto CounterDrive Carto ParkingLotCallWarehouseDeliverOilYesCollectMoneyCorrectChange?YesPick upCarDriveAwayExitMake ChangeNoRelationship mapping for any businessProductDesigns/ServicesFinanceMkt/SalesNew Product/ServiceSuppliersMfg./Order Fulfillment

11、DistributionMarketPlacePersonnelCapitalRevenuesBudgetsPromotionsLeadsProduct/Service IdeasOrdersRaw Materials/ResourcesHuman ResourcesProductTechnologyAs is map purchasing a carBAyesAs is map purchasing a car(cont.)ATake customer to business manageryesno15M 1HAccept?BOffer acceptedGo to bussiness ma

12、nageerGoback 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 involvement of champion/sponsor and steering committeen

13、going 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-time “Should be” Should be” SessionSession3-5 days A

14、ction 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 minimum resources of Waste is everything other than

15、 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 activity is considered wasteIncrease effectiveness of curre

16、nt 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 the process currently being used.Why cross-functiona

17、l 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 action item ownersEmpower,secure the team & limit ca

18、pital 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 20% Understand the complete process15% Develop the

19、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 process Usually 3 to 5 conti

20、nuous 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 be map(vision)map(vision)Incorporate projec managem

21、ent 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 itemA team member becomes t

22、he 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 plan each action item to be measurableeach action it

23、em 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 determine why and fixwhy and fixMeasure results Re-map eve

24、ry 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 administratice and service functions: 80-95% reduction

25、Typical 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 wallPresent objective close on demandPresent object

26、ive close on demandMotorola financial closingMotorola financial closingCycle timeTotal procurement cycle timeTotal procurement cycle timeTotal delinquencies to customer requestTotal delinquencies to customer request06121824303642485460Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.010203040506070809

27、0100Delinquent 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.actualgoal01020304050607080

28、90 100Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.daysDecilinquent ordersdaysdaysactualgoalactualgoalactualgoalCulture change must be driven from the topTop-down commitment and involvementTop-down commitment and involvementSet the example,be active in the audit processSet the example,be active in

29、 the audit processMeasurement system to track progressMeasurement system to track progressAt both macro and micro levelAt both macro and micro levelCommon well-understood set of metricsCommon well-understood set of metricsTough goal setting(Reach out!)Tough goal setting(Reach out!)Provide the requir

30、ed educationProvide the required educationSpread the success storySpread the success storyRecognize and reward those who contributedRecognize 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结束结束