2002 Volume 10 Issue 2 Pages 13-24
The purpose of this article is to focus on the importance of assigning monetary values to time, hence to clarify the concept of the Cost of Time by means of measuring it. To do this, the article first clarifies the definition and framework of the Cost of Time. Second, it gradually adapts the three frameworks of the Cost of Time, which are Preventive, Appraisal, and Failure Cost, to the three levels of One Workshop, One Corporation, and Supply Chain. Third, it clarifies the adequacy of the definition of the Cost of Time, as mentioned above, by means of measuring the Cost of Time. If measurement can be taken, the results would indicate that we could interpret the definition of the Cost of Time in a broad sense for purposes of both decision making and performance evaluation. I believe that this would expand the view held thus far which especially emphasizes the use of the Cost of Time in decision making. It is uncertain whether the following perspective has been considered by others in the field, however, I would like to suggest that the idea of utilizing the Cost of Time for performance evaluation should also expand.
