More than ever the element of time is critical to businesses
today. Businesses need to
compete on the basis of speed to
achieve a competitive edge in the marketplace. Being responsive to
customers needs as they occur and reducing the time between
conception and delivery to the customer are central to
Lean . Stalk and Hout in their
book,
Competing Against Time
- The 0.05 to 5 rule : Value is being added between 0.05% and 5% of the total time.
- The 3/3 rule : The wait time, during which no value is added is split 3 ways, each accounting for approximately one third of the time:
-
The 1/4-2-20 rule : For every quartering of the
total completion time, productivity will double and cost will be
reduced by 20%.
- The 3 x 2 rule : Companies competing on the basis of speed enjoy growth rates of three times the average, and twice the profit margin.
