Can businesses effectively compress time? This paper tackles the challenge of lead-time reduction in business processes, presenting a conceptual framework for modeling lead times to support effective re-engineering. It addresses a gap in conceptual models and operating tools, where time-based competition (TBC) has gained attention, but practical tools are lacking. Two levels of lead-time modeling are identified: an aggregate level, which accounts for the relationships between lead times of different phases of a process, and a detailed one, which allows the mechanisms of lead-time making to be clearly understood. Existing time models are reviewed, and two new detailed models are proposed to meet the growing need for process re-engineering. The models are presented with time components and composition laws. A process taxonomy is suggested to select suitable lead-time models. The study also shows how detailed models could link lead time to process performances and managerial levers. Thirteen time-drivers, affecting the lead time of a given process and its basic components, are identified, providing actionable insights for business improvement.
Published in the International Journal of Operations & Production Management, this paper addresses a core topic of interest for the journal. By presenting a conceptual framework and practical models for lead-time reduction, the paper contributes to the development of more effective operations and production management strategies.