February 27, 2024

Turnaround time (TAT) is the time interval from the time of submission of a process to the time of the completion of the process. It can also be considered as the sum of the time periods spent waiting to get into memory or ready queue, execution on CPU and executing input/output. Turnaround time is an important metric in evaluating the scheduling algorithms of an operating system. What is Turn Around Time (TAT)? Turnaround time (TAT) is the time taken to complete a process. It is measured as the duration between an order request and the task completion (execution). It sapplies to any process, task, operation, or activity but is usually used in manufacturing, computing, or logistics. Many businesses use TAT to assess how fast they can serve their customers. Thus, firms aim for more work done in minimum TAT—customers also want the same thing. Thus, TAT directly correlates with customer satisfaction, market retention, and brand perception. To reduce TAT, companies strategize and implement various ideas and tools. In computing, the firm attempts new algorithms. The term is confused with other similar metrics—lead time, waiting time, etc. Each industry has different terminology. For example, in manufacturing, TAT refers to the time taken for maintenance, upgrade, and fixation. On the other hand, in the context of computing, TAT refers to the duration between submission and the output (result). TAT refers to the duration between order submission and order fulfillment in logistics. Formula The turnaround time formula is as follows: Turnaround Time = Completion Time – Arrival Time Alternatively, it is also calculated as follows: TAT = Burst Time + Waiting Time Example Let us assume that arrival and completion data (in hours) for a process is as follows: P1 (arrival time = 2, completion time = 3) P2 (arrival time = 4, completion time = 6) P3 (arrival time = 6, completion time = 9) P4 (arrival time = 9, completion time = 11) Here, P represents the process. Now, according to the formula, TAT = Completion Time – Arrival Time We apply the formula and deduce values for each process. P1 = 1 P2 = 2 P3 = 3 P4 = 2 Therefore, we get the following collaborative TAT: Collaborative TAT = P1 + P2 + P3 + P4 (1 + 2 + 3 + 2) Collaborative TAT = 8 Now the average TAT is computed as follows: Average TAT = (P1 + P2 + P3 + P4) /4 Average TAT = 8/4 = 2 Thus, the turnaround time is 8 hours, whereas the average turnaround time is 2 hours. Importance The importance of turnaround time is as follows: In business, time is often equated with money; the longer the process, the larger the monetary expenditure. In that context, a shorter TAT directly results in increased profits. Services with less TAT help create goodwill and trust among consumers. Customers dislike waiting for long periods.   A business that encounters a longer TAT struggles to survive in a competitive market. To improve TAT, businesses cut unnecessary steps and reduce communication. Simultaneously, these measures also end up cutting costs.  What is Waiting Time (WT)? WT refers to the total time that a process spends while waiting in a ready queue before reaching the CPU. The difference between (time) of the turn around and burst time is known as the waiting time of a process. BT (Burst Time) – It is the total time that a process requires for its overall execution. Thus, TAT – BT = WT Now, we can also easily calculate the Turn Around Time using the Burst Time and the Waiting Time. Here, BT + WT = TAT Turnaround Time And Waiting Time Turnaround time (TAT) is the duration between a process leaving the queue and getting completed. On the other hand, waiting time refers to the total time. Waiting time also includes the time spent in the queue. TAT affects the speed of the output device or channel. In contrast, waiting time does not affect the output speed. For the same process, an algorithm can produce multiple TATs. In contrast, algorithms cannot alter the waiting time. Turnaround Time vs Lead Time vs Throughput Turnaround time (TAT) defines a job’s total amount of time. On the other hand, the lead time is the gap between the order placement and delivery. In contrast, throughput is a data processing unit. The turnaround and the lead are measured in time units. On the contrary, throughput is the rate at which a company can offer services or manufacture products. A company will always seek to improve its turnaround and lead time by reducing it. On the other hand, businesses try to increase their throughput. When a business reduces TAT or lead times, customers are happier (they have to wait less). In comparison, when a business increases throughput, it generates more revenue. FAQs How to calculate the average turnaround time? there are five processes. First, TAT for each process is calculated. Then, the individual TATs are summed up and divided by the frequency of the complete process. How to improve turnaround time? TAT can be improved by taking these measures:– Plan ahead.– Work on post-TAT reporting.– Induce better communication and transparency.– Make quick management decisions during the turnaround.– Vertical integration. What is the turnaround time for shipping? TAT is referred to as vessel turnaround time (VTT) in shipping. VTT is the duration between a vessel’s arrival and departure (from a port). Thus, VTT measures the time a vessel spends at a particular port. TAT is the time between placing an order and package delivery. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting

Banks and Banking Institutions are critical to a country’s development. Banks are economic actors, and they, like other sectors, are subject to hazardous operations. A bank auditor examines the banking sector’s services during a Banking Audit. A Bank Auditor is defined as an accounting professional who evaluates the procedure. Audits of credit unions or banks might be either external or internal. One of the most important aspects of a bank audit is Revenue Leakage. Some banks undertake it individually, while others include it as part of a Concurrent Audit, Statutory Audit, or Internal Audit before beginning the audit.  Audit of Bank An Audit of Banking is a process that inspects an institution’s financial stability to guarantee that the rules and regulations are followed in accordance with the legislation. Banking companies are audited by a bank auditor. The goal of a banking company audit is to ensure compliance. The goal of a bank audit is to determine if the institutions’ financial activities are lawful, fair, and complete. The primary goal of a bank audit is to undertake an impartial examination of the bank’s performance, information systems, and controls. To obtain the findings, the system must be subjected to a number of tests, and auditors can recommend some possible corrective steps that the institution could do to improve its performance. Regulatory and financial reports are examined to see if they were properly submitted. Tests are performed to discover transactions that are incomplete, incorrect, or unauthorized. Control testing is a means of determining whether or not the bank is being operated properly and effectively. Bank Audits of Various Types Bank audits are classified into several forms, including risk-based internal audits, statutory audits, and tax audits, stock audits, credit audits, RBI inspection system audits, forensic audits, concurrent audits, snap audits, and foreign exchange audits. However, the following three types are mostly prevailing and common: Concurrent Audit Internal Audit or Information Systems Audit Statutory Audit Let us discuss them one by one in detail. Concurrent Audit: Concurrent audit refers to the study or audit of a transaction while it is currently taking place. Features of Concurrent Audit: The following are the features of Concurrent Audits: Synchronous Audit: A concurrent audit is one that occurs throughout the year. Monthly Basis: Concurrent audits are performed on a monthly basis by external auditors, often Chartered Accountants. Daily Transaction Evaluation– Concurrent audits assess and check the transactions that occur on a daily basis to ensure consistency. Purpose of Concurrent Audit: Concurrent auditing ensures the smooth flow of work at bank branches and the correction of any errors to avoid the cascade impact that arises from irregularities. Concurrent auditing is a method of assisting branches in order to function smoothly and correcting any mistakes in order to minimize the cascade effect of irregularities instantly at the moment they occur. It aids in the detection of fraud at the formation stage, resulting in the preservation of public funds. Internal Audit or Information Systems Audit: Features of Internal Audit or Information Systems Audit: The following are the features of an Internal Audit or Information Systems Audit: One-on-one Visits: Internal auditors from within the organization visit branches one by one at the location and time specified for auditing. Aspect-centric: Internal audit can be aspect-centric, which means it can focus on any one area/aspect of the branch or the entire spectrum of the branch, depending on the audit program and requirement. Conducted by the organization Itself: Internal audit is carried out by the corporation itself or, in the case of a bank, by the bank itself. Purpose of Internal Audit or Information Systems Audit: Internal control audits are performed to assure the seamless, accurate, and secure flow of information throughout the business via the channels, as well as the security (of information).Internal Control audits are performed to guarantee that new financial software is functional as well as accessible and secure.Information Systems Audit is a new field that has grown in popularity in recent years. With the fast growth of computerization in the banking industry – core banking, ATMs, mobile banking, and internet banking – it is increasingly important to conduct periodic reviews of the operation of these systems. Internal control audits look at information flow, channels, information security, and so forth. It also evaluates and reviews the functionality of new developing financial software as well as their security and access. Audit by Statute Statutory Audit relates to the audit that is mandated by law to be performed by a Statutory Auditor. A statutory audit is a legal requirement imposed by the RBI for banks. The RBI appoints the Statutory Auditor in collaboration with the Institute of Chartered Accountants of India. Features of Statutory Audit: The following are the features of Statutory Audit: Every year, at the end of March or the beginning of April, a Statutory Audit is performed. In banks, the completion of financial years signals the year-end audit i.e. Statutory Audit. Statutory Audit finishes NPA, and hence it is a crucial audit. It should be highlighted that NPA provisions have an impact on the bank’s profitability, as well as the Balance Sheet, Profit & Loss Account, and, ultimately, shareholder dividends. The RBI appoints Statutory Auditors in collaboration with the ICAI to appoint Chartered Accountants for the audit. Purpose of Statutory Audit Statutory audits focus on loans and advances, adherence to PSL requirements, SLR, CRR, and so on, as well as compliance with other statutory norms according to the most recent RBI announcements.Banks conduct multiple transactions on a regular basis, resulting in copious documentation and other formalities that the banks must follow. A contemporaneous audit makes it easier to detect and correct any inconsistencies and non-conformities. This prevents the buildup of irregularities, which may be a major headache for any branch during the end-of-year audit. Concurrent Auditors monitor daily maximum cash balance adherence, KYC requirements, documents connected to loan distribution and loan disbursement in accordance with laws and regulations, income leakage, and so on. Several banks do internal audits in addition to concurrent auditing. With the rapid digitization of the banking industry, information systems audit—a subset of internal

Time to market (TTM) is the total length of time it takes to bring a product from conception to market availability. Companies use time-to-market metrics during new product development (NPD) and new product introduction (NPI) as they strive to gain first-mover advantages (e.g., market share, sales revenue).Time to market (TTM) refers to the amount of time from the moment of conceiving the idea about a product through to launching the final product or service to customers. Everyone involved in the development of the product or service has an impact on the TTM achieved. The concept is most commonly used for new products or services, or new features of existing products and services. The term can also be used for the time for a new marketing campaign to get to market, or for a new process to go live. The concept might occasionally be referred to by the term speed to market (STM). What is time to market? Time to market refers to the duration it takes to bring a product from initial ideation to market delivery. It’s a critical factor in determining the success of your product release.If you move too slowly, you risk falling behind competitors who might capture the market before you do. If you rush, you could exhaust resources trying to push a product onto a market that isn’t ready for it. But if you get the timing right, you’ll be on track for success. What factors impact your time to market? Two main categories of factors affect time to market: those within your control and those beyond it. The factors within your control relate to how you execute bringing a product to market, including the product development process, cross-team coordination, and go-to-market (GTM) strategy. External factors usually related to the market — such as market readiness, health, and competitive risk — are beyond your control. Understanding these differences is crucial when considering time-to-market strategies. In the following sections, we’ll delve deeper into each of these factors and discuss strategies for optimizing them without compromising product quality or customer satisfaction. Why Reducing Time to Market Is So Powerful Understanding time to market helps you create a more seamless development experience for your team. You can reduce the time it takes to launch products into the public, deliver continual value to customers, and build stronger relationships at scale. When you improve TTM, you deliver value to customers faster. This helps you gain a competitive advantage and capture revenue quicker. Developing new products takes valuable time and resources, which you spend upfront. So being able to release your products faster helps offset those costs and recoup your initial investment. Reducing TTM increases your release cadence as well. That helps you build a more consistent and predictable revenue model for your business and reminds customers of your value, which informs their overall satisfaction with your product. Use your understanding of these benefits to refine your product development strategy. This understanding helps you think critically about how your team scales various processes and workflows and helps maximize resource costs for the best return on investment. Improving your time to market makes these processes and workflows more efficient and easy to complete. That efficiency streamlines your developers’ experience and builds a more engaged and collaborative team culture. How time to market offers a competitive advantage In an imaginary market where there was no competition and your audience would be waiting to buy from you whenever you were ready, time to market would be rendered irrelevant. But that’s not reality. There are competitors in all markets, and your success depends not only on impressing your customers, but doing so in a manner that gives you an edge over the other players.If you are late to the market – that is, if your competitors beat you to the market with a new product or service – you’ll need to find a way to overcome that disadvantage. While not impossible, you’ll be playing from behind, and no business wants to be in that spot. Unless your product is so good that it simply can’t be ignored, you may never catch up with the competition that first gained the attention of the relevant customers or clients.With this concept of gaining a competitive advantage at the heart of why time to market matters, it’s easy to see a paradox developing. You want to get to the market quickly to gain an edge on your competitors – but offering the best product on the market is also a competitive advantage. So, something has to give. It’s striking the right balance between getting to the market quickly while still meeting quality and innovation expectations that is central to success with TMM initiatives. Other benefits of improving time to market Explore more opportunities. As your time to market comes down, decision-makers in your organization may see an opportunity to test out more new product and service ideas. If there is only a six-month lead time to take a product to the market, rather than two years, for example, the barrier to trying new things is lowered. With a reduced time and financial investment demanded by each project, more projects can be given the green light. From there, it’s a simple matter of math to see how your organization can benefit – if half of your projects are a hit, and you launch 10 instead of 5 in a given timeframe, you’ll be left with twice as many strong products in your portfolio. Launch on time. Not only does a streamlined time to market process help you beat the competition, but it also helps you time your product launches accurately to meet customer demand. Have a new product that will be a big seller for the holiday season? With strong time to market procedures in place, you can be sure it will be available by November. Or, launching something that is primarily a summer product? Schedule the development and production process so it is available by April or May. When organizations don’t put an emphasis on time to market,