Time-based approaches

The time-based approach factors in the time spent on a project, rather than the material cost of a sample, as the key cost element in the laboratory research phase. FTE, the price unit of choice, is driven by the salaries of the researchers and varies considerably between developed and less developed... 

Wang, W. (2003). A delay time based approach for risk analysis of maintenance activities. The Journal of the Safety and Reliability Society 23(1) 103-113. 

Time-based approaches from granular and pulsar to PSOLA and statistical... 

Increased responsiveness to customer needs is the most common reason for organisations to invest in time-based approaches to performance enhancement. Many elements of customer service are dependent upon time. These include how long it takes to deliver a product or service, achieving on-time delivery and how long it takes to deal with customer queries, estimates and complaints. 

Despite the clear benefits of time-based approaches to logistics management described above, there are often barriers to its application, as well as bmltations to its relevance. 

An additional issue is that time-based approaches might lead to superior performance only being achieved on a limited number of occasions. An illustration of this situation is shown in Figure 5.2. In this example a supplier demonstrates that it is able to deliver in only one day. However, it is clear that this was achieved for only a minor portion of shipments, which does not mean that customers can depend on shipments being consistently completed within a day. Rather customers will order seven days in advance, where the required 99 per cent service level for deliveries is achieved. Time-based approaches are not about managing exceptions but managing for speed reliably. 

One of the major advantages of a time-based approach to managing processes over one based on cost or quality is the ease with which time is understood as a measure. While cost and quality are open to differences in interpretation, time is an absolute measure. Stalk and Hout (1990) refer to the time elasticity of price, where the price that customers are prepared to pay is often related to the delivery speed. For example, Talleres Auto in Case study 1.4 was able to charge premium prices for spare parts in breakdown situations because these were distress purchases. ... 

Competing on time demands a fast response to customer needs. Time-based approaches to strategy focus on the competitive advantage of speed, which helps a network to cope with variety and product innovation, while also improving returns on new products. Speed also means less reliance on longterm forecasts. 

Such analysis is similar to that described in Chapter 5, with the process considered in this case being the whole supply chain from end to end. There are two main differences between QR and a time-based approach to improvement. First, there is an emphasis on using actual customer demand to pull products through the distribution and manufacturing system. Second, there is extensive use of information technology as the preferred way to achieve pull. These two issues are explored in more detail below. 

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