Turn around Time

What is Turn around Time?

Turn around time refers to the total time taken to complete a specific task or process from start to finish. It is commonly used to describe the time required to fulfill a customer order, deliver a service, or complete a production cycle. In simpler terms, turnaround time is how long it takes to "turn around" a request, job, or project.
The term is widely used across different sectors, including manufacturing, healthcare, logistics, software development, customer service, and many others. While the exact definition of turnaround time may vary depending on the industry, it always refers to the time elapsed from the initiation of a request or task to its completion or delivery.

For example:

• In manufacturing, turnaround time could refer to the time it takes to produce an item after receiving an order.
• In customer service, it may denote the time between a customer request (such as a support ticket) and its resolution.
• In logistics, turnaround time might describe the time taken to unload, reload, and dispatch a vehicle for a new delivery.

Importance of Turnaround Time

The significance of turnaround time lies in its direct impact on business operations, customer experience, and financial outcomes. Whether a business deals with physical goods or digital services, improving TAT is often synonymous with improving efficiency, productivity, and profitability. Here are some of the reasons why turnaround time is so crucial:

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• Customer Satisfaction: The most obvious impact of turnaround time is on customer satisfaction. In today's competitive market, customers expect fast and efficient service. Whether it's the quick delivery of a product, timely resolution of a support ticket, or the fast execution of a service, customers are more likely to return to businesses that meet or exceed their expectations in terms of response times and service delivery.
• Operational Efficiency: Turnaround time is a key indicator of operational efficiency. The faster a company can complete a task or process, the more tasks it can handle in a given period. This increases overall productivity and reduces bottlenecks, enabling a business to serve more customers or handle more orders.
• Cost Management: Minimizing turnaround time is often directly correlated with cost savings. When a business can reduce the time spent on a task, it reduces labor costs, inventory costs, and overheads, all of which contribute to improved profitability.
• Improved Resource Management: In industries where resource allocation is critical, such as manufacturing or project-based businesses, optimizing turnaround time can lead to better resource management. The faster a task is completed, the more efficiently resources (like workers, machinery, and materials) are utilized.
• Competitive Advantage: Businesses with shorter TATs can outperform competitors by being more agile and responsive to market demands.

How to Measure Turn around Time

Turn around time can be measured using this formula:

Turnaround Time (TAT) = End Time - Start Time

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Example: If a product takes 3 days from the moment a customer places an order until it's delivered, the TAT is 3 days.

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Businesses track this time using tracking systems, data collection tools, or project management software like Asana, JIRA, or Trello.

Factors That Influence Turnaround Time

• Resource Availability: Insufficient resources can delay progress.
• Complexity of the Task: Complex operations naturally take longer to execute than simpler ones.
• Process Bottlenecks: Inefficiencies or delays in specific stages can extend TAT.
• External Dependencies: Delays caused by suppliers or partners can add to turnaround time.
• Technology: Outdated tech slows processes, while automation can save time.

Strategies to Optimize Turnaround Time

Reducing turnaround time is a continuous effort that requires a combination of strategic planning, process optimization, and technology adoption. Below are some strategies that can help businesses optimize turnaround time:

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• Process Mapping & Analysis: Identify bottlenecks by analyzing workflows.
• Streamline Communication: Clear communication ensures no steps are missed or delayed.
• Adopt Technology & Automation: Automate repetitive tasks to save time and reduce errors.
• Optimize Resource Allocation: Ensure the right tools and personnel are allocated effectively.
• Training & Development: Equip teams with the skills to reduce errors and inefficiencies.
• Outsource When Necessary: Outsourcing certain tasks can maintain efficiency and meet deadlines.

Real-World Example: How Turnaround Time is Critical

Consider a hospital facing challenges in its patient diagnostics turnaround time. A delay in getting test results could delay treatment for serious illnesses.

Action Taken: The hospital mapped its lab workflows, implemented new technologies to process lab results faster, and provided staff training.

Result: The hospital reduced turnaround time by 30%, enabling faster treatment and improving patient outcomes.

How to calculate turn around time in Jira

At RVS, our tool, Time In Status Reports provides a robust functionalities to help you monitor and optimize your workflows.

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How to calculate the Cycle time with Time in Status Reports :

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Navigate to the Grouped statuses Settings in your Jira instance.

• Go to the menu Apps -> Manage your Apps
• On the left Nav bar you will see Time in Status Reports -> Grouped Statuses
• Select Grouped Statuses from the settings menu.

Configuring Status Groups:

Grouped statuses allow you to categorize multiple statuses into broader groups. This helps in simplifying the tracking of issues as they transition through various phases.

To configure these groups:

• Click on Add Group
• Name your group (e.g; “Cycle Time”, “Lead Time”, "Turn around Time" etc)
• Select the statuses that belong to each group, eg; “Cycle Time” might include statuses like “Development” , “Testing”, “Review” and “Deployment”.

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Define your Working Days Calendar:

Once you have defined your groups, another setting you need to do is define the working days/time of your team. TIS Reports allows you to set the same.

On the app page, click on “More -> Settings” and set the working days and time in “Time Reports” section

Analyzing Turn around Time Data:

With the setting configured, project managers can then analyze the data:

• Go back to the reports section of your app page
• Filter your issues as per the multiple filter criteria’s.
• From the statuses drop down select the status “Cycle Time”.
• The app will add the column “Cycle Time” to your report table and will automatically sum up the status times of all the statuses configured in the “Cycle Time” grouped status.”.

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For more information, visit here and get a 30 days free trial for Time in Status Reports by RVS now.

Conclusion

Turnaround time is a vital performance metric that allows organizations to measure efficiency, reduce costs, and improve customer satisfaction. Understanding the factors influencing TAT and implementing strategies for optimization can foster operational growth and agility across industries.

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