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Time Compression

This document discusses time compression and supply chain management. It defines a supply chain as a system linking suppliers, producers, distributors, and customers through the flow of materials and information. It describes Forrester's model of a supply chain, which includes echelons, production processes, information flows, decision points, transmission lags, and decision rules. Faster cycle times can improve demand forecasting, defect detection, speed to market, and shift the decoupling point towards customers. The document outlines rules for minimizing material throughput times and discusses how providing better information, shortening work cycles, and synchronizing lead times can reduce inefficiencies in the supply chain. Time compression is seen as a powerful competitive strategy and information management is key

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prateek gandhi
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197 views21 pages

Time Compression

This document discusses time compression and supply chain management. It defines a supply chain as a system linking suppliers, producers, distributors, and customers through the flow of materials and information. It describes Forrester's model of a supply chain, which includes echelons, production processes, information flows, decision points, transmission lags, and decision rules. Faster cycle times can improve demand forecasting, defect detection, speed to market, and shift the decoupling point towards customers. The document outlines rules for minimizing material throughput times and discusses how providing better information, shortening work cycles, and synchronizing lead times can reduce inefficiencies in the supply chain. Time compression is seen as a powerful competitive strategy and information management is key

Uploaded by

prateek gandhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Time compression and supply chain

management – a guided tour


• A good working definition of a supply chain is
that described by Stevens as: a system whose
constituent parts include material suppliers,
production facilities, distribution services and
customers linked together via the feed
forward flow of materials and the feedback
flow of information.
Forrester model
Echelon – following constituents
• perceived demand for products
• a production or value-added process;
• information on current performance,
• disturbances owing to machine/equipment breakdowns, etc.;
• decision points (where information is brought together and
acted on);
• transmission lags, which occur for both value-added and
other activities;
• decision rules (based on company procedures) for changing
stock levels, placing new orders, etc., in the light of available
information.
Potential for influencing the bottom
line
Total cycle time reduction

Key drivers resulting from time


compression include:
• improved demand forecasting;
• quicker defect detection;
• quicker to market; and
• shifting decoupling point towards
the customer.
Supply chain dynamics
Material flow in the supply chain
• Rule 1: only make products which you can quickly
dispatch and invoice to customers.
• Rule 2: only make in one period those
components you need for assembly in the next
period.
• Rule 3: minimize the material throughput time.
• Rule 4: use the shortest planning period, i.e, the
smallest run quantity which can be managed
efficiently.
• Rule 5: only take deliveries from suppliers in small
batches when needed for processing or assembly.
The three-pronged attack on supply
chain inefficiency
(1) They work to provide each company in the chain
with better and more timely information about
orders, new products and special needs.
(2) They help members of the chain, including
themselves, to shorten work cycles by removing the
obstacles to compression that one company often
unwittingly imposes on another.
(3) They synchronize lead times and capacities among
the levels or tiers of the supply chain so that more
work can flow in a coordinated fashion up and down
the chain.
Why to compress time???
Time compression in the supply
chain: information management is
the vital ingredient

Rachel Mason-Jones and


Denis R. Towill
• Total cycle time
• How powerful is time as a competitive
strategy?
• The seamless supply chain is crucial
Traditional SCM
Time compression in production and
distribution within the textile
apparel chain

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