Ready, Set, Begin
Written by: James K. Allred

In recent columns we have discussed the importance of cycle time reduction for keeping your company competitive in today's market. We've looked at how real-time inventory control, material movement, empowered employees, and your vendors and customers all play an important role in breaking the time barrier--a barrier as real as any brick wall.

But how do you begin to put all those pieces together so they make sense? And how can you tell if you really need to overhaul your system, anyway?

To discover whether your company can benefit from implementing the principles we've outlined, there are a few simple rules of thumb you can use to check your current system. Ask yourself these eight questions (no cheating):

1. Do I have more than three weeks of inventory on hand?



2. Is my average inventory error by stock keeping unit (SKU) greater than 1/2 of 1 percent?



3. Are the workplaces and aisles in my factory or warehouse cluttered and full of work-in-process?



4. Are my material flow patterns long and/or complex?



5. Do supervisors spend more than 40% of their time "fighting fires" and expediting?



6. Are less than 95% of my customer shipments on time with a less than .05% shipping error?



7. Do workers spend more than 20% of their time searching for material or waiting for the right material to be brought to them?



8. Finally, is my actual cycle time more than three times my theoretical cycle time (that is, the minimum possible time to process an order)?

If you answered yes to any one of these questions, it's definitely time to take a closer look at your system.

The good news is, once you've recognized that you have a problem, you're on your way to solving it. And although putting a new system in place won't be easy-the payoff makes it well worth the effort. As a start, appoint a cross-functional team to analyze your entire process. Choose a high level "champion" to oversee the effort, somebody who enjoys respect and can break down organizational barriers. If you're not sure how to proceed, talk to an expert in total quality or material handling logistics. Find some companies in different industries who have overcome the same challenges and go see how they did it.

Above all, keep an open mind and be receptive to new ideas. To break the time barrier will require effort and teamwork, but wait until you see what's on the other side.

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