The Hyper-Competitive Environment
Back in 1982, it took about eight years to get a car from the drawing board to the market. Over the last two decades, that time has shrunk dramatically to five, then three, and even two years. Today, companies like GM (General Motors) and Ford (Ford Motor Co.) can design and launch a new product in just 18 months, and it's said that Toyota can do it in as little as 12 [^1].
This isn't an isolated phenomenon limited to the auto industry. Actually, "environmental turbulence" and "time compression" are expression of a hyper-competitive world. These trends hit every economic sector, especially those dealing with things like mature markets, evolving customer needs, and rapid technology changes.
In short, organizations are now forced to do more (and do it better) in less time and with fewer resources.
This means that traditional models are no longer able to create lasting strategic advantages. The level of quality demanded by the market is much higher than it used to be; today, no company can afford to have a quality level that isn't close to 100%! Beyond that, every business must strive for excellence—the best possible result, in less time, with fewer resources—in all its internal processes, from design and production to distribution and after-sales service.
How We Can Help
We can help you by implementing a Simplified Drum-Buffer-Rope (SDBR) system. This approach is designed to dramatically cut down on inventory and cycle times, while significantly improving your on-time delivery rate. Typically, you can expect at least a 30% reduction in lead time and a delivery rate of over 95%
How We Do It
The best way to start is by scheduling a meeting. This lets us get to know each other, understand your business, your client commitments, and figure out the best solution for you. How we move forward from there is a decision we'll make together.
Our engagements usually include:
- Training: We teach you how to effectively implement the SDBR approach in your specific environment.
- Training and Consulting: In addition to training, we can provide the support you need for implementation, including
- working with your existing ERP/MRP systems,
- developing material release plans,
- fine-tuning production priorities, and
- assisting with ongoing improvement.
[^1] Dati WardsAuto.com[^2] Richard D’Aveni, HyperCompetition