Using time as a performance measure

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.  

If anyone adjusts a stable process to try to compensate for a result that is undesirable, or for a result that is extra good, the output that follows will be worse than if he had left the process alone. 

Frequent interference in a stable process increases the variability of its output Time, on the other hand, is a measure that everyone understands. Every person has access to the exact duration of a second, minute or hour, thanks to clocks using the same units of time. Time allows people across an organisation, with 

By comparing this measure with one taken for the performance of competitors, we can easily answer the next key question  

If we take a reason for measuring performance as being to understand the effect of making changes to a process, we can more easily answer the question  

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