An empirical study of time‐based competition in the North American automotive supplier industry

Abstract

The importance of responding to time‐based competitive pressures has prompted US manufacturers to emphasize time‐based performance and deploy strategic action programs aimed at cycle time reduction. This study examines time‐based competition among first tier suppliers to the Big Three in North America. A comprehensive set of time‐based performance measures is defined and time‐related action programs associated with world class manufacturing strategies are identified. Relationships between time‐related action programs, time‐based performance, and overall firm performance are examined. The study shows that time‐based performance significantly affects overall firm performance and that manufacturing lead time is especially critical in the automotive industry. The study also identifies strategic action programs that result in improved performance on various dimensions of time‐based performance.