Time-Based Management (TBM)
L1 Define
The use of new technology to reduce the lead time or development time of new products, so they can be brought to the market much faster
L3 Advantages of TBM
- Quicker response times (reduced lead times) to meet changing market and customer needs
- Faster new product development
- Reduction in waste, therefore greater efficiency
- This can therefore be a source of competitive advantage (‘first mover advantage’) for the firm if it can get a reliable new product into the market and build brand loyalty before its competitors.
L4 Disadvantages of TBM
- Company needs to have flexible production facilities that enable it to make changes easily. For example, it may need to be able to switch production quickly between different products and to alter the length of production runs as needed.
- Investment in technology will be costly
The use of new technology to reduce the lead time or development time of new products, so they can be brought to the market much faster
L3 Advantages of TBM
- Quicker response times (reduced lead times) to meet changing market and customer needs
- Faster new product development
- Reduction in waste, therefore greater efficiency
- This can therefore be a source of competitive advantage (‘first mover advantage’) for the firm if it can get a reliable new product into the market and build brand loyalty before its competitors.
L4 Disadvantages of TBM
- Company needs to have flexible production facilities that enable it to make changes easily. For example, it may need to be able to switch production quickly between different products and to alter the length of production runs as needed.
- Investment in technology will be costly