Value‐adding Performance Measurement: A Time‐based Approach

The competitive pressures being placed on Western manufacturing organizations require new restructuring models, which take account of value‐adding capability and guide investment. Time‐based manufacturing strategies offer a framework to develop the total input/output chain in isolation of selling price. This method can be used successfully in batch‐manufacturing companies to reduce throughput time and conversion cost – the method is non‐capital‐intensive and involves total company and people commitment. Discusses a case study and results from implementation in a JIT environment in the electrical switchgear industry. Further research is required to link throughput time reduction with total factory cost and investment justification.