Cycle-time reduction "” the process of compressing the time to perform manufacturing tasks "” can be a powerful tool to help manufacturers better align capacity with demand, reduce waste, improve order-to-cash cycle time, and improve customer satisfaction.
The first task for any cycle-time reduction program is to evaluate existing manufacturing processes and identify opportunities to remove non-value-added activities or improve productivity. Potential improvements can include a wide range of actions, such as changes in manufacturing techniques, adjustments to nominal staffing levels, or even the outsourcing of certain activities. Some of these options will undoubtedly require capital investment or product-design changes that can significantly affect an organization's liquidity, inventory balances, and borrowing costs.
