time based competition

8/3/2019 Time Based Competition

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Suhas Rane


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Concept that time is a resource and a firm thatmake better use of time (in responding to thechanging market situations and otherenvironmental conditions) acquires a

competitive advantage.

Time-based competition is the extension of JITinto every facet of the product delivery cycle,from research and development throughmarketing and distribution of the final product.

The term was coined by the US consultant George Stalk, Jr., of BostonConsulting Group and popularized by his book 'Competing Against Time.

Business Advantage

Quality Cost

Time

DEFINITION

ORIGIN


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Low Cost Products using MassProduction

Low Cost Products through increased

production efficiency

Quality Improvements

Lean Production and JIT

Rapid development efforts and timebased competition


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Time BasedCompetition

Fast to Market

Product DevelopmentCycle Time

New ProductInformation

Fast to Product

Production Lead Time Delivery Speed

Results in:Market DominationAdvanced Learning CurveBarriers to Entry

E.g.:Sun Microsystems

Results in:Inventory ReductionCost ReductionRevenue Enhancement

E.g.:Wal-Mart


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Source: Paper on TBC by Cecil Bozarth and Steve Chapman, NCSU


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Task overlapping in lieu of Phased Approach

Process Oriented Approach instead of Functional Approach

Coordination & Collaboration between supply chain partners

Process Reengineering

Continuous Improvement Efforts


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Understand need tochange

Importance of supply responsiveness to customer

D-time target that customer setTotal P-time

Understand process

Map whole process

Find out activity time/wasted timeCompare the P-time and D-timeCompare total activity time and D-time

Identify unnecessary process stepsand large amounts of wasted time

Identify steps that do not add

value to customer

Identify large amounts of

wasted time

Understand thecauses of waste

Identify the causes of unnecessary

process steps and wasted time

Change theprocess

Choose solutions that will make

the process more responsive

Review changesEvaluation

Adjustment

Feedback


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Annual Contracts & VMI

Quality materials to avoid quality checks

On line ordering and replenishment

Partnering for product development and rapidproduct introduction

Sourcing

Reducing manufacturing lead times

Smaller batch size and low inventory levels

Total productive maintenance

Concurrent engineering

SMED

Manufacturing

Cutting down on echelons in distribution network

Outsourcing of logistic activities , Cross docking

Real time information on stock levels andconsumption patterns

Quick redressal of customer complain

Distribution


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Simplified and more flexible organizations

Lower development costs & shorter planning loops

Simplified production control with higher efficiencies

Rapid response enables companies to quickly redirecttheir value-delivery systems to the most attractivecustomers

Increases market share through first-mover advantage

Drives the Company to reengineer their businessprocesses right from the R&D to the Final Delivery


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Increased responsiveness to customer needs

Managing increased variety

Deliver a product orservice on time

Deal with customerqueries and

complaints on time

High level ofresponsiveness to

customer

Customerloyalty

Reducing overall lead-time

Reducing product complexity

Reducing process set-up time

Production withmore frequency and

smaller batches

Increasedvariety ofproducts


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12/20

Time based competition through productdevelopment time reduction

3M reduced its new product developmenttime from two years to two months

Fuji Xerox (Japan) reduced its photocopierdevelopment time from four to two years

Toyota achieved a new productdevelopment time two years shorter thanthat of the Big Three automakers

Cincinnati Milacron met the onslaught offoreign competition in the injectionmoulding machine business by developinga better performing, lower cost machine innine months as compared to its historicalaverage of two years

Time based competition throughmanufacturing lead time reduction

Motorola's cellular phone was drasticallycut from several weeks to four hours.

Toyota takes two days to produce a car,which is three days shorter than NorthAmerican manufacturers.

Manufacturing lead time for Allen-Bradley's World contactors and relays is asingle day.

Johnson and Johnson's Vistakon divisionhas the top selling contact lens in themarket largely due to its rapid (three daysor less) and reliable (99.99 per cent on-time) delivery of disposable contacts tocustomers.

Source: Paper on TBC by Jayanth Jayaram, Shawnee K. Vickery, Cornelia Droge


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Time-Based Competition in Multistage Manufacturing:

Stream-of-Variation Analysis (SOVA) MethodologyReview

D. CEGLAREKW. HUANG

S. ZHOUUniversity of Wisconsin-Madison


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Shortening of product life cycle to 2-3 years in afew years time

Large number of design changes during the

design phase (6,000 changes on average for a newautomotive body development)

Long ramp up time

Low production yield

The old assembly line cannot be entirely used for anew product


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In the last decade, the so-called stream of variation analysis (SOVA) methodologyhas been proposed and developed to overcome the aforementioned challenges.

SOVA is a generic math model for variation propagation analysis in multistagemanufacturing systems.

SOVA integrates multivariate statistics, control theory as well asdesign/manufacturing knowledge (CAD/CAM models) into a unified framework.

The stream of variation analysis (SOVA or SoV) methodology is a genericsimulation engine for modelling, analysis, and performance prediction ofmultistage manufacturing processes

Important in industries where product geometry and dimensional variation are ofcritical importance


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SOVA serves two objectives

In the design phase, the SOVA can be used for analysis, prediction, andoptimization of manufacturing system performance following theconcept of FTRDesign.

Given the process and tooling design information, SOVA can simulatethe variation propagating throughout the process and then predict thefinal product-dimensional variation and resultant product geometry.

In the production ramp-up phase, SOVA can be used to identify and isolatefault rootcauses following the concept of FTRDiagnosis. SOVA candemonstrate high responsiveness in identifying and isolating root causesof dimensional variation


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Automotive body at the optical measurement station.

Optical

MeasurementSystems


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time based competition

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