Digitex - Digitex Corporation Beginning in the late 1990s,...

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Digitex Corporation Beginning in the late 1990s, Digitex Corporation began a policy of doing business “using time as a prime competitive weapon.” Specifically, this involved collapsing time from product time-to-market as well as faster response to customer demands. The goal was to greatly improve competitiveness and improve across all key business measures. A set of tools developed by the company focused on waste elimination, simplicity, flexibility, quality, employee effectiveness, self-controlling mechanisms, creating awareness that whole processes take precedence over individual operations, and continuous improvement. The new initiative, described as just-in-time/total quality control (JITQC), combined the initiatives of just-in-time with the concepts of total quality management. The total quality principles emphasized at Digitex involved: 1. An emphasis on quality first, not short-term profit 2. Orientation toward the consumer and customer, not the producer 3. A view of the next process as the customer and a corresponding reduction of organizational barriers 4. Use of statistical methods and decision making based on facts, data, and problem- solving techniques 5. Full employee involvement in problem solving 6. Broader, more flexible management perspective Digitex sought to drive improvement by first ensuring adherence to the JITQC system, which should lead to an increased analysis of processes and process improvement. Eventually, the standardization of new business processes should result. The new corporate philosophy centers around the A T (read as “A – delta – T”) System, which involves the identification of actual conditions (A), the determination of the theoretical ideal (T) and the elimination of intervening waste or delta ( ). The challenge behind this system is to design a function or
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process in which the actual time to perform a process (A) equals the theoretical (T) level of the time to perform. A T provides a way to assess actual conditions and model the ideal process. As a result, waste can be identified, discussed, analyzed, and removed from the process. Once the objective of “achieving theoretical time” is clear, the challenge of achieving theoretical values becomes clearer and the necessary tools and approaches can be aggressively applied. Achieving the theoretical time becomes a motivating challenge that should translate into individual action. Digitex applies A T to any process or system that involves time or cost, such as production, administration, sourcing, communication, new product introduction, and so on. Purchasing’s Role in JITQC To support the JITQC initiative, Digitex renamed purchasing “Supplier Manufacturing” and integrated a number of new policies and procedures into the new sourcing management department. Contracts are now constructed around families of parts for the projected life of a product, component, or technology. Because product life cycles in the computer industry are so
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Digitex - Digitex Corporation Beginning in the late 1990s,...

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