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TotalcycletimereductionAbusinessachievetotalcustomersatissfactionwhenitsworkforceIstrainedandempoweredtoconcurrentlyapplytotalcycletimereductiontoolsandqulityimprovementtoolswithincross--functionalteamsEmbracesacontinuousimprovementprocesswhichsupportsmeasurementsandrewardsconsistentwithchangeobjectivesthatadjusttocustomerneedsTotalcycletimeTotalycletimeistheactualtimethatpassesfromthetimeacustomerexpressesaneeduntilthecustomer’sneedissatisfied.CustomerrequestProduct/serviceForcustomerTotalcycletimereduction-acompetitivetoolResponsivenesstomarketandcustomerneedsReducedcostImprovedprofitsImprovedtotalcustomersatisfactionIncreasesassetutilizationBusinessevolvesovertimeAtfirstagoodprocessisestablishedBuesinessneedsgraduallychangetheprocess.Thechangesarenotalwaysforthebettter..Everyonetiestodotheirbestbuttheprocessevolvestothecurrentstate..Probablyfewpeoplehavelookedatthecompleteprocessfromstarttofinish.Ifwearetoimprovewemustcompletelyunderstandwhatwedoandhowwedoitthenwewilldiscoverhowtodoitbetter.AsIsThepresentlevelofperformanceatwhichabusinessprocessorfunctionisoperatingShouldBeAlevelofperformancethatabusinesscanachieveusingcurrentresourcesCouldBeAlevelofperformancethatcantbeachievedthroughthestrategicadditionofnewresourcesIssuesProblems,disconnects,and//oropportunitiesforimprovement((missing,,unnecessary,,orpoorlyperformingsteps)).TotalcycletimetermsGreastperformanceimprovementachievedwithpresentresourcesCouldbeShouldbeAsistime9-12monthsWithadditionresourcesWithpresentresourceBusinessperformanceFlowchartSequentialflowofasimpleprocessRelationshipmapDiagramshowthepiecesofasysteminterrelatewithinanorganizationCross-functionalprocessmapDiagramsthespecificstepstakentoaccomplishatask,,organizedbywhichfunctionisresponsibleforthestepIncludestimerequiredtoperformeachstepMappingisusedtodiagnosecycletimeproblemsProcessflowchartWalkinDoorWaitinLineFillOutFormGiveFormtoCounterReceiveFormGiveFormtoGarageWaituntilReadyDriveCarintoGarageStartDriveCarOnLiftRaiseLiftHaveContainers?SelectContainerDrainOilLowerLiftCallWarehouseDeliverContainersYesNoHaveCorrectOil?PutinOilGiveFormtoCounterDriveCartoParkingLotCallWarehouseDeliverOilYesCollectMoneyCorrectChange?YesPickupCarDriveAwayExitMakeChangeNoRelationshipmappingforanybusinessProductDesigns/ServicesFinanceMkt//SalesNewProduct/ServiceSuppliersMfg../OrderFulfillmentDistributionMarketPlacePersonnelCapitalRevenuesBudgetsPromotionsLeadsProduct/ServiceIdeasOrdersRawMaterials/ResourcesHumanResourcesProductTechnologyAssumptions:basicresearchcomplete.model&&accessoriesdecided..Approximate$tospend..caravailableatdealer..DriveandarriveatdealercustomersalespersonSalesmanagerBusinessmanagerCycletimeResearchonnewcarBrowseCarsDicusscaroptionsDicussprice2H48H1H–3HSalespersonapproachescustomerPullinformationoncar>>Asismappurchasingacar是GotomanagerforaprovalMakeanoffer20M–2H>>DiscussofferDiscusscounterofferReachagreementReviewofferPresentcounteroffervanishBAnoAccept??yesAsismappurchasingacar(cont.))customersalespersonSalesmanagerBusinessmanagerCycletimeATakecustomertobusinessmanageryesno15M–1HAccept??BOfferacceptedGotobussinessmanageerGobacktosalesCheckoutnewcarDriveofflot5M–30MMeetcustomerFilloutformsFilloutformsGobacktosalesTotalcycletime=3H40M--54H30MAsismappurchasingacar(cont.))customersalespersonSalesmanagerBusinessmanagerCycletimeGetnameofdealer..salesperson&pricefrominternet20M–1HReseachcarinfo.Oninternet10M–20MTotalcycletime=45M––2h20mReciveprofileofcustomerGotodealerContratsalespersonClosedealRecallcust.ProfilefromsystemLeavelotCompletePaperworkCheckoutnewcar15M–1HcustomersalespersonSalesmanagerBusinessmanagerCycletimeShouldbepurchasingacarMajorprocesscgangestakesabout12monthTeamactivityOngoinginvolvementofchampion//sponsorandsteeringcommittee39-52weeks

Identifytheprocessandplantheproject4weeksPart-time

“Asis””Session3-5days

Involveother’swithmapandissues3-5weeksPart-time

“Shouldbe””Session3-5days

ActionitemTeamsDevelopPlans3-5weeksPart-time

DetailedDesignandimplentation7-10monthsCross-functionalprocessmapping123451245“Asis”cycletime“shouldbe””cycletimeRemovedwasteReducecycletimeEliminatewasterWasteiseverythingotherthantheabsoluteminimumresourcesofmaterial,machinesandworkforcesrequiredtoaddcaluetotheproductAllnon-valueaddedactivityisconsideredwasteIncreaseeffectivenessofcurrentactivities.SimplifytheprocessReducecostFindhecausesoferrorsandeliminateRedefinetheprocesscurrentlybeingused.Whycross--functionalprocessmappingChoosetheprocesstobemapedOneofyourcriticalprocessAprocessthatcrossestheorganizationAprocessthatisintroubleOneofthekeyprocessesAprocesstoserveasa““TestBed””Choosethechampion&steeringcommitteeGuideandmonitortheactivityRemoveroadblocksKeepseniormanagementinformedofstatusofCTRCommunicatetoallemployeestheeffectivenessandstatusoftheCTREncouragetheteamInsurefrequentmeetingsareheldMntortheactionitemownersSelectacross-functionalmappingteam“doers”whoareinvolvedineverystepoftheprocess(85--90%oftheteam)RepresentativesofallmanagementlevlesRepresentativesofalllocationsinvolvedintheprocessesChoosefromthebestemployees((keepers)Teamsizefrom8to75Empower,securetheteam&&limitcapitalinvestmentSeniormanagementallowstheteamtoimplementtheiraolutionsRegularmanagementreviewsAllteammembers’positionwiththecompanyareassurediftheirfunctioniseliminatedNoadditionalcapitalNoadditionalpeopleChoosetwooutsidefacilitatorsTwofacilitataosrequiredUsetrainedfacilitatorsSomeoneimpartialNotinvolovedintheprocessConductthe““asis””sessionUsually3to5continuousdaysMajoroutputDefineissues60%Buildtheteam20%Understandthecompleteprocess15%Developthemap5%ReviewwithothersShowthemaptomanypeopleintheorganizationCoveralltheissueswithasmanyassociatesaspossibleSolicitadditionalissuesfromothersBuildenthusiasmtofix/improvetheprocessCollectideasfortheshouldbeObtainbuy-inofthechangeprocessUsually3to5continuousdaysMajoroutputDevelopasetofactionitem40%Transferownershipoftheprocesstothosewhodothework30%Developapictureoftheshouldbe15%Establishmentofchangeagentsatyurcompany15%Developtheshouldbemap(vision)IncorporateprojecmanagementtrainingDevelopprojectobjectivestatementIdentifydeliverablesDevelopflexibilitymatrix&&workbreakdownstructureEstablishscheduleandganttchartCreatriskmanagementplanMonitorprojecttoscheduleanychangefromasiatotheshouldberequireanactionitemAteammemberbecomestheactionitemownerActionitemsarespreadaroundsoeachteammemberhasatleastoneTypically30to60actionitemsThesumoftheactionitemsistheactionplanFulltimeteamleadermanagertheimplementationPrepareactionplanEachactionitemownerLeadsthesubteamChoosetheteammembersEstablishestheactionplanwithhisteamManagersallstagesoftheteamsactivitythroughimplementationTeammemberleadtheactionitemAssociatesoutsideoftheteamarerecruitedtoparticipateTypically100-250additionlapeoplegotinvolvedBuildsexcitementtoseeithappenOthersintheorganizationareaskedtoassistMostcriticalaspectRunbytheteamleaderMininumofmonthlymeetingsEncourageasmanyotherstoparticipateImplementactionitemsInstitutionalizethe““shouldbe”processImplementactionplaneachactionitemtobemeasurableEstablishmeasurementpointsBeginmeasuringShowactualversusshouldbegoalIfprogressdoesnotoccurdeterminewhyandfixMeasureresultsRe-mapevery18--30monthsSpreadawarenessthroughtrainingSenjormanagementcontinuedinterestandattentionRewardandrecongnitionshouldtietoCTRContinuousimprovementindustrystepsValueAddedStepsPercentStepsValueaddedValueAddedTimeglass((tableware)food(ingredientprocess))textile(yarnmfg.&&weaving)metal((wheelcylinder))electronics(cableassy.)Consumerproducts((disp.Razor)Mfg..support((orderentry)7237105184239105986411141910158%11%10%8%8%10%15%<1%<1%<1%<1%<1%<1%<1%Value-addedactivitylistsevenindustriesFormanufacturing:65-70%reductionForadministraticeandservicefunctions::80-95%reductionTypicalexperienceintotalcycletimereductionCycletimereductionhasmanybenefitsMotorolaPagers40daysLessthan1hour1987closing-3s9daysApril1990closing-5s4daysJune1992closing-6s2daysHitabrickwallPresentobjectivecloseondemandMotorolafinancialclosingCycletimeTotalprocurementcycletimeTotaldelinquenciestocustomerrequest06121824303642485460Jan..Feb..Mar..Apr..MayJun..Jul..Aug..Sep..Oct..Nov..Dec..0102030405060708090100Delinquent96Shipped96ShipTotalmanufacturingcycletime02468101214161820Jan..Feb..Mar..Apr..MayJun..Jul..A

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