gain competitive advantages in (a) price, (b) product innovation, and (c) service. Several factors affect a companyÆs time compression management. These factors include (a) company organization, (b) management as a strategic resource in integrating activities along the value chain, (c) the use of management systems that facilitate the flow of operations, and (d) the use of information technologies (Cook & Hagey, 2003).
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 employed by many firms to attain such objectives is the pursuit of cycle-time reduction as in integral part of the supply-chain management process (Zank & Vokurka, 2003).
Cycle-time is the period between a productÆs design and the time of delivery of the product to the customer. Experience indicates contend that success in such an effort leads to improved profitability, higher levels of customer satisfaction, and increased market share (Stasz, 2003).
There are several approaches to cycle-time reduction. Most cycle-time reduction programs operate in conjunction with quality improvement programs as a part of the supply-chain management effort in a company. Thus, cycle-time reduction is not an isolated activity within an organization (Ramadorai & Harris, 2003).
Global competitiveness is forcing companies of all sizes to go to ever-greater lengths to improve customer satisfaction. Organizations that focus on cycle-time as a productivity measure, can both decrease delivery time and improve quality, thereby creating a more satisfied customer. Cycle-time includes several sub-cycles. The make/ship sub-cycle is the time from receipt of material, through the value-adding conversion steps, to shipment or tr...