Increasing globalization of both market and production has placed added pressures on firms to reduce costs. Cost reduction is necessary not just to improve profitability, but rather in the contemporary and projected business environments to remain viable competitors. A contemporary approach to management that is being employed by many firms to such ends is cycle time reduction. Cycle time is the period from product design to customer delivery. It is this total time span in which reduction is sought. This research examined several approaches to cycle time reduction that have actually been placed into practice. No one of the approaches presented in this research provides all of the answers to the cycle time reduction problem for all organizations. Each of the approaches, however, has some degree of relevance to any organization desiring to reduce overall cycle time. The answer to cycle time reduction for most organizations will be an amalgam of the approaches described in this research and other approaches discussed in the literature to derive a system that is most appropriate for the needs of a specific organization.
Cycle time is the period between a product's design and the time of delivery of the product to the customer (Campbell, 1995, pp. 34-35). Proponents of shortened cycle times contend that success in such an effort will lead to improved profitability, higher levels of customer satisfaction, and increased market share.
Approaches to cycle time reduction are numerous (Andel, 1994, pp. 95-102). Most cycle time reduction programs are closely tied to an organization's quality improvement program (Catlow & Cryer, 1995, pp. 28-29). Thus, cycle time reduction is not an isolated activity within an organization. The approaches to cycle time reduction discussed in this research are significant; however, other worthwhile approaches also are described in the literature.
Cycle Time Reduction Through An Emphasis on Loops...