Selasa, 21 Oktober 2014

SUMMARY : TIME COMPRESSION IN SUPPLY CHAIN

  • 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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