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Cycle Time Optimization

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  • 1. Edward C. Lai & Associates Introduction to Cycle Time Optimization (CTO) © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 1
  • 2. Edward C. Lai Definition & Associates Cycle Time Optimization (CTO) is an operating philosophy of maximizing the efficiency of suboptimal value-added activities while minimizing non-value-added activities and time for the best quality, cost and responsiveness to customer needs. Optimal Thinking® is the core of all activities. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 2
  • 3. Edward C. Lai Cycle Time Optimization Chart & Associates Value-adding Activities Optimal Non-Value-adding Suboptimal and Time Activities © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 3
  • 4. Edward C. Lai Some Suboptimal Examples & Associates Case (1) : Excessive SVA Activities Case (2) : Excessive Queue Time Value-adding Value-adding Activities Activities Optimal Optimal Non-Value-adding Non-Value-adding Suboptimal and Suboptimal and Activities Activities Case (3) : Continuous Optimization Case (4) : Combination Value-adding Value-adding Activities Activities Optimal Optimal Non-Value-adding Non-Value-adding Suboptimal and Suboptimal and Activities Activities © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 4
  • 5. Edward C. Lai Systems Concept & Associates Process Input Output Feedback • Each system has input, output, process and feedback • Each system has smaller systems inside • Each system is part of a bigger system • Systems are inter-related If any one of the parts is suboptimal, the whole system is suboptimal. © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 5
  • 6. Edward C. Lai Principles in Process Optimization Design & Associates 1. Perform activities in parallel as early as possible 2. Set up common priority system 3. Minimize variability in the system 4. Minimize queue time 5. Minimize suboptimal and non-value-adding activities 6. Optimize value-adding activities 7. Minimize errors (Do it right the first time) 8. Detect errors at the source 9. Set up feedback system for timely corrective action 10. Set up optimal process-oriented performance metrics and measurement system 11. Perform best process failure mode and effect analysis © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 6
  • 7. Edward C. Lai Root Cause Analysis & Associates Areas to consider : • People • Process • Equipment • Material • Measurement • Environment © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 7
  • 8. Edward C. Lai Optimization Types of Optimization & Associates Continuous Optimization Time Combination Breakthrough Optimization Time Time © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 8
  • 9. Edward C. Lai & Associates For more information on CTO, please contact : Ed Lai 310-365-0629 elai001@aol.com © 2009, Edward C. Lai and Associates. OPTIMAL THINKING® is a registered trademark of The World Academy of Personal Development Inc. All Rights Reserved. Page 9