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Speed as the New Competitive Advantage

More than ever, speed is becoming the major competitive advantage of business. Speed can be described in a number of ways. It could be the speed at which you meet external challenges, such as using the Internet, or the speed at which you identify and seize new customer trends. It can also mean the speed of delivery of your products and services, or the speed of a particular business process such as accounts receivable, batch reactor residence time, railcar loading, patient waiting time, project delivery, or sales quoting time.

If you consider your organization, what do you believe to be the areas where things just take too long? Do you even know? Have you asked your customers? Being able to meet increasing customer demands for speed is a constant challenge. Technology has improved delivery speed, but people expect to have things now, faster, better, cheaper.

  • McDonalds performed a study on its drive-through windows and determined that if they could speed up delivery by just 6 seconds per transaction, they could sell millions more.

     
  • B.F. Goodrich determined that if they could reduce the time it took to dump a batch of product from one vessel to another by just 28 seconds, they could make 1 more batch per day, providing thousands of extra dollars in income.

     
  • Monsanto decreased bottle fill time by a fraction of a second and sold millions more gallons of

Examples abound from every industry where people are continuously chipping away at the time it takes to perform every conceivable task. The results are often astounding, saving money for companies, improving morale of employees (because things work better with less delays), and boosting customer satisfaction.
 

So, how do you go about improving the speed at which things get done around your organization? The process used to gain improvement is often called Cycle Time Reduction or Process Mapping and is implemented in 8 steps.

  1. Identify Opportunities-Identify the core processes that add value for your customers. These would be areas where customers, employees, or suppliers have voiced concerns and where doing things more effectively or efficiently could produce better results.

     
  2. Form Teams -What is the scope of the project? When do we want to see results? Who will facilitate the process? Who will make up the team or teams? How will success be measured? What kinds of skills are needed? What type of training do we need? Essentially, this step helps you to develop a plan.

     
  3. Analyze the Current Process-Develop a map of the process as it exists today. Follow the product through the cycle and then go back and follow the people. Separating people and products identifies different issues.

     
  4. Develop the New Process-After gaining a complete understanding of where you are, you and your team are now ready to develop the process as you think it can be-your vision of the improved process.

     
  5. Identify Root Causes and Proposed Solutions-Now you have the framework to identify all the obstacles between the existing process and the improved process. Identify areas where the new process simplifies, eliminates waste and integrates key steps. Identify solutions that will improve SPEED.

     
  6. Test-Test the new process and new procedures. Train employees and help them deal with change. Use input from field employees to further refine and fine-tune the new process.

     
  7. Measure Results-Report the progress of the new process. Be sure to place graphs in highly visible locations so employees see that the changes they are making are getting results.

     
  8. Recognition and Continuous Improvement-Provide recognition to the improvement teams and employees for making changes that benefit customers, the company, and themselves. Lastly, don't stop here, be sure to evaluate and identify new areas for improvement where your processes can be improved. Positive results are guaranteed!
Copyright © 2005 Focused Developments, LLC
Last modified: 03/06/09