Time-based management focuses on reducing the amount of time required to complete a process. The concept is most commonly employed in the production area, where time reduction eliminates labor and inventory holding costs, thereby making a company's products more cost-competitive. A business that continually focuses on time-based management should build up a substantial advantage over its rivals over a period of time. This approach has the following benefits to an organization:
Faster customer response times
Lower labor costs
Reduced investment in inventory
Reduced levels of production waste
Shorter product development cycles
Time-based management works most effectively when a company is not burdened by restrictive work rules, and where there is a high level of trust between management and employees regarding ongoing changes to processes.
Since time-based management seeks to shrink the time invested in a business, it can be considered a tool of the lean management philosophy.