TBC is a concept developed by George Stalk and Tom Haut, and documented in their book, “Competing Against Time.”
They observed that Japanese companies did not compete on volume, but instead reduced their product development times, and factory lead times in order to increase speed. This allowed for “flexible manufacturing” that produced more variety of products (customized for their customers), which increased market share while maintaining or even exceeding quality levels.
By viewing the entire organization as a value delivery system, managers can realize strategic and operating advantages by managing time (not cash), reducing lead times, and eliminating waste.
Time-based concepts lead to establishing new relationships between suppliers and customers which result in time and cost savings, enhanced productivity, and ability to customize products/services for individual customers.
Exhibit 1 provides an example of how process speed was able to reduce costs for businesses in Japan.
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