Cycle time reduction in assembly and test manufacturing factories: A KPI driven methodology

In this paper we will introduce a new cycle time performance tracking matrix derived from the factory physics queuing model. We will explore a systematic way to structure the hierarchical cycle time key performance indicators (KPI) framework and also to define the right owner to improve those measurements. We will extend the discussion to some control and improvement methods, in particular, CONWIP release control management, a first in first out (FIFO) dispatching automation tool and the use of value stream mapping (VSM) to reduce factory variability. These tools and methods lead to great benefits to the factory cost saving.