Cycle Time Reduction

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Cycle Time Reduction
- An Inter - organizational Supply Chain Perspective

TABLE OF CONTENTS

EXECUTIVE SUMMARY … … … … … … … … … … … … … … … … … … … … … … … … … … (Page 3 - 4) ISSUE IDENTIFICATION … … … … … … … … … … … … … … … … … … … … … … … … … … (Page 4) ENVIRONMENTAL & ROOT CAUSE ANALYSIS … … … … … … … … … … … … … … … …. (Page 5 – 8) RECOMMENDATION (S) AND IMPLEMENTATION… … … … … … … … … … … … … … … (Page 9) MONITOR & CONTROL … … … … … … … … … … … … … … … … … … … … … … … … … … (Page 10) CONCLUSION … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … (Page 10) REFERENCES, EXHIBITS & APPENDIXES … … … … … … … … … … … … … … … … … … … (Page 10)

Executive Summary
The primary objectives of the study were to determine current cycle times, to identify obstacles that adversely affect cycle time performance across the supply chain, and to explore opportunities for cycle time reduction. Although several cycle time impediments were identified, the key obstacle identified was the lack of required information across the supply chain. It was noticed that Supply Chain Perspective have moving information internally, moving information up and down a supply chain that resulted to manage information more difficult. In response to this situation, the research team developed a prototype for inter - organizational information system (IOIS). The IOIS aims at meeting the information requirements of the supply chain members, and in so doing provides a critical resource required to improve performance across the entire supply chain. The cycle time project was originated in a meeting of researchers from the FedEx Center for Cycle Time Research (the Center) and representatives of a major semi - conductor manufacturer. The purpose of this meeting was to explore potential cycle time reduction opportunities within the firm’s international logistics operations. During this meeting it was decided that, although the logistics issues were important, a potentially more fruitful (and challenging) project would examine opportunities for cycle time reduction across an entire supply chain where semiconductors were used. The semiconductor firm and the research team invited three additional organizations to participate in inter - organizational supply chain study. These organizations included a major supplier of semiconductor components, a world-wide producer of computers and related peripheral equipment, and a major US retailer of computer products. The research team's role in the project was to:

Assist the participating organizations in achieving cycle time reductions by sharing accumulated knowledge in the area; •Provide a forum for the participating organizations to explore mutually beneficial opportunities for inter - organizational cycle time reduction; and •Gain new knowledge regarding opportunities for cycle time reduction in inter - organizational supply chain environment. Each organization provided an overview of its key processes within the supply chain, discussed current cycle time performance, and presented areas viewed as major cycle time obstacles. In addition to the group presentations, several small group breakout sessions were also conducted which allowed participants to focus on specific topics of interest. At the close of the workshop, representatives of each organization committed to continuing with the project. To facilitate this process, each organization identified one to four people to participate in future project activities.

Issue Identification
1.Information flow not in close loop;
2.Longer lead – times from sales perspective;
3.Longer manufacturing lead time from the production perspective; 4.High WIP inventory;
5.Disruptive work flow;

Boeing's alliance with its strategic partners was not, however, without its problems. Integration of their information systems was extremely complex and much of the data was not easily...
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