Response Time
Response Time is like productivity in that it is a function of people, technology, and management strategies. Therefore, the same arguments that apply to productivity apply to response time. This is particularly important in the age of global competition because response time and quality, taken together, are becoming more important than the old “low-bid” approach when it comes to winning contracts. The ability to deliver a quality product on demand is prerequisite to participating in just-in-time contracts. These are contracts in which suppliers provide their products just in time to be used in the production process. This allows manufacturers to produce their products while carrying little or no inventory. A characteristic of today’s mast competitive companies.