How to Cut Manufacturing Throughput Time 43 How to Cut Manufacturing Throughput Time by Xenophon A. Koufteros The University of Texas at El Paso Mark A. Vonderembse William J. Doll The University of Toledo Manufacturing firms are facing an environment where success depends on quick response to customer demands. Despite important contributions by Blackburn (1991) and Stalk and Hout (1990), we lack large-scale, empirical evidence that time-based manufacturing practices can reduce throughput time. More importantly, we lack an understanding of which practices are vital in achieving throughput time reductions and what management actions are critical to achieve high levels of these practices. This paper presents a framework for understanding time-based manufacturing practices. It reports on the results of a large-scale empirical study that determines which practices have a significant impact on throughput time reduction 1 . The study included 244 discrete part manufacturing firms primarily from four industries: fabricated metal products, industrial and commercial machinery, electrical equipment, and transportation equipment. Results of the study indicate that quality improvement efforts and pull production approaches are critical time-based manufacturing practices. Quality improvement efforts are facilitated by dependable suppliers and shop-floor employee involvement in problem solving. Pull production is facilitated by reengineering setups, cellular manu- facturing, and preventive maintenance. These three practices are, in turn, enhanced by shop-floor employee involvement in problem solving. Based on these results, manufacturing managers seeking improved operations should begin by enhancing employee empowerment and participation. Time-based competition focuses on reducing response time by squeezing time from every facet of the value-delivery system from research and development, to product development, to manufacturing, to marketing and delivery (Abegglen and Stalk, 1985). While time-based competition focuses on time reduction, it often also accomplishes substantial improvements in costs, quality, and productivity. Blackburn (1991) and Stalk and Hout (1990) describe case studies where manufacturing firms that redesigned their business processes to compress time achieved higher productivity, increased market share, reduced risk, and improved customer service. Time-based manufacturing is one weapon for time- based competitors. Time-based manufacturers implement a set of practices designed to reduce throughput time. A literature review identified seven key practices including: shop-floor employee 1 This research was supported by the Academic Challenge Grant from the Information Systems and Operations Management Department in the College of Business Administration at The University of Toledo.