- ADI NUR ACHMAD / 2244.12.154 / S1 MLM C
The ‘time compression’
approach to business process improvement in the supply chain. The concept and
strategic relevance of this approach was first published in the West in the
early 1990.
Time compression in
supply chain explain about :
- · TIME COMPRESSION IN SUPPLY CHAIN : TIME COMPRESSION AND COMPETITION
- · WHAT TIME COMPRESSION IS
- · THE TIME COMPRESSION APPROACH : COMPETITIVE ADVANTAGE
- · THE TIME COMPRESSION APPROACH : COST ADVANTAGE
Using ‘time’ as a
measure holistically creates a deeper understanding of the total business
process, and therefore provides scope for optimization and also a pragmatic
approach to change. The use of time in this context is directly linked with
competitiveness, and will be referred to as the ‘time compression’ approach. Approach
focuses on how companies use time to deliver a sustainable fast response to
customer needs, through business processes that are organized around a
strategic time-based focus.
This time compression
can result in a number of cost savings associated with the removal of fixed and
variable overheads (such as rent and management), direct costs (such as labour
and materials), and working capital.
Time compression can be
achieved using any one or a combination of seven strategies identified by
Carter, Melnyk and Handfield (1994), and these can be applied at company level
through to a total supply chain.
- · SIMPLIFICATION
- · INTEGRATION
- · STANDARDIZATION
- · CONCURRENT WORKING
- · VARIANCE CONTROL
- · AUTOMATION
- · RESOURCE PLANNING
The key aspect for the
use of ‘time compression’ is that it is not necessarily about being faster or
the fastest. Quality is paramount to competitiveness, and substituting ,
quality for speed is not the primary objective. compression of time is
essential to the effectiveness and efficiency in all business processes and
therefore time compression should be applied properly to the business processes
of firms can compete.
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