Optimizing Cycle Time: The Key to Faster Delivery of Customer Value

In today's rapidly changing business world, reducing cycle time has become a priority for companies aiming to ensure competitiveness and Customer satisfaction. One of the key concepts emerging in this discussion is "Cycle Time" – the time it takes from initiation to completion of a process.Cycle Time is the time required to complete a specific task from start to finish, which is crucial for process efficiency and responsiveness to market changes. This can include the time from Customer order placement to product delivery, the time required to produce one unit of a product, or the time needed to perform a specific task within a business process. Optimizing cycle time involves eliminating waste, minimizing delays, and streamlining workflow to shorten the time required to complete the cycle.

Effective cycle time management is crucial for achieving business success and maintaining a competitive advantage. Conscious use of metrics and tools, and a constant drive for process optimization, form the foundation of effective organization management in a dynamic business environment. What are the main benefits of cycle time optimization?

• Faster delivery - Shortening cycle time means faster delivery of products or services to Customers, which in turn increases their satisfaction and loyalty.
• Greater efficiency - Optimizing cycle time leads to more efficient production and operational processes, allowing companies to achieve more in less time. Additionally, it provides flexibility in adapting to changing market conditions and faster response to new challenges and opportunities.
• Market competitiveness - Companies that can deliver value to Customers faster than competitors gain a competitive advantage in the market. Moreover, it enables faster iteration and innovation, fostering development and increasing competitiveness.
• Lower costs - Shortening cycle time can also lead to reduced operational costs by eliminating waste and optimizing resources.
  

• Process analysis - The first step in optimizing cycle time is a thorough analysis of existing processes to identify areas ripe for improvement.
• Waste elimination - Removing any activities and processes that do not add value to the Customer, such as overproduction, workflow delays, or excessive inventory.
• Automation - Utilizing process automation technologies to speed up task execution and minimize human errors. 
• Process standardization - Standardizing business processes and developing clear operating standards to avoid unnecessary delays and ambiguity.
• Technological innovations - Leveraging modern technologies such as artificial intelligence, data analytics, or the Internet of Things to optimize processes and shorten cycle time.
  

As mentioned earlier, the benefits of cycle time optimization are numerous. Faster delivery of products or services to Customers not only increases their satisfaction but also builds loyalty and trust. Flexibility in adapting to changing market conditions and faster response to new challenges and opportunities become possible through cycle time reduction. Furthermore, cycle time optimization enables faster innovation and iterations, fostering development and increasing the company's competitiveness.

It's also worth highlighting practical examples of success, such as the effective optimization of the E-Flex authorization process at Raiffeisen Tech. E-Flex is an application of the R-Flex system for currency exchange for our clients. After a vulnerability was revealed in one of the system components, we had to respond quickly and effectively. Instead of incurring high software update costs, we decided to embed the functionality directly into our microservices, which not only solved the problem but also brought additional benefits, such as increased resilience and ease of maintenance.

But let's start from the beginning. At the end of 2023, a vulnerability was discovered in Ambassador, the API Gateway used in our project, which played a fundamental role in the E-Flex authorization process. One way to solve the problem would have been to upgrade its version, which, however, would have significantly increased the project's costs. After conducting an analysis, we decided to embed the functions performed by Ambassador directly into our microservices. This solution has many other benefits, such as increased resilience, ease of maintenance, and alignment with market standards. 

The icing on the cake was the security test report conducted after implementing the changes—no critical or major vulnerabilities were detected in the new solution. Thus, we are confident that the employees of our clients, Network Banks, can continue to use the application in compliance with the highest security standards. Additionally, we managed to save approximately $50,000 annually. Impressive, isn't it?

Cycle time optimization is becoming increasingly important for companies seeking to increase their efficiency, competitiveness, and Customer satisfaction. By eliminating waste, automating processes, and leveraging innovative technologies, enterprises can shorten the time needed to deliver value to Customers, contributing to their success in the market. Cycle time optimization is no longer a luxury but a necessity for companies wishing to thrive in today's dynamic business environment.