Time strategies: throughput and delivery time reduction

Cost reducing time strategies

Elimination Elimination involves the elimination of avoidable processes within the value chain. A large potential for elimination is often found in administrative service departments. In some cases, waiting times for information or parallel data entry can be eliminated.

Fault clearance The elimination of disturbances such as failures or faults has a cost-saving effect on the one hand and a positive effect on the throughput time on the other.

Simplification A simplification of methods and procedures can lead to cost savings and shorter operating times.

Standardization The introduction of standards in various processes saves time and money for a company. The example of SAIL, a system architecture for intralogistics, shows the use of standardized functions.

Cost-neutral time strategies

Parallelization During parallelization, an order is split into several partial orders. Processing of the partial orders then takes place at the same time in different storage zones. This time strategy is used, for example, for order-oriented parallel picking.

Scheduling By setting and adhering to delivery dates, the service providers involved can work to deadlines. Shorter throughput times are the result.

Synchronization Well-coordinated work steps shorten the order throughput time. For example, good coordination of the business processes goods receipt, putaway, picking, packing and goods issue is important to ensure that the order throughput time is as smooth as possible.

Costly time strategies

Prioritization The throughput time of rush orders can be significantly reduced by giving rush orders priority over other orders. However, this strategy results in additional costs due to the longer processing time of normal orders.

Individual production The special focus on individual orders and processing of individual production generally leads to an increase in order costs.

Acceleration If the cycle frequency of the machines is accelerated in machine processing, the throughput time is shortened, but the costs increase.

Contract logistics

Besides the just-in-time and just-in-sequence methods, other time strategies can be used to ensure that materials are in a constant flow. A smooth material flow has a positive effect on throughput and delivery times.

Cost reducing time strategies

Time strategies that have a cost-reducing effect are

Elimination
Elimination involves the elimination of avoidable processes within the value chain. A large potential for elimination is often found in administrative service departments. In some cases, waiting times for information or parallel data entry can be eliminated.
Fault clearance
The elimination of disturbances such as failures or faults has a cost-saving effect on the one hand and a positive effect on the throughput time on the other.
Simplification
A simplification of methods and procedures can lead to cost savings and shorter operating times.
Standardization
The introduction of standards in various processes saves time and money for a company. The example of SAIL, a system architecture for intralogistics, shows the use of standardized functions.

Cost-neutral time strategies

Time strategies that have a neutral effect on a change in costs are

Parallelization
During parallelization, an order is split into several partial orders. Processing of the partial orders then takes place at the same time in different storage zones. This time strategy is used, for example, for order-oriented parallel picking.
Scheduling
By setting and adhering to delivery dates, the service providers involved can work to deadlines. Shorter throughput times are the result.
Synchronization
Well-coordinated work steps shorten the order throughput time. For example, good coordination of the business processes goods receipt, putaway, picking, packing and goods issue is important to ensure that the order throughput time is as smooth as possible.

Costly time strategies

However, the use of some time strategies also has a negative impact on the “cost” factor. These include:

Prioritization
The throughput time of rush orders can be significantly reduced by giving rush orders priority over other orders. However, this strategy results in additional costs due to the longer processing time of normal orders.
Individual production
The special focus on individual orders and processing of individual production generally leads to an increase in order costs.
Acceleration
If the cycle frequency of the machines is accelerated in machine processing, the throughput time is shortened, but the costs increase.

After applying strategies to reduce throughput and delivery times, time control should be applied to ensure continuous effectiveness.

You can find more information on logistics under Contract logistics.

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