Model: flow efficiency
August 21st, 2022
What is flow efficiency
it's about maximizing the density of value transfer and eliminating non-value-adding activities
throughput time
density
increase flow efficiency
throughput time
flow efficiency is value-adding activity in relation to the throughput time
throughput time = value adding / total time
total time: choose start-point and end-point
start: when a need arises
end: when the need is fulfilled
Quote: throughput time in most organisations
example + calculation
need: patient has a sore throat
value adding time: time with doctor and other staff (10 minutes)
time period: time from patient's arrival to patent leaving the health centre (30 minutes)
flow efficiency: 10m / 30m = 33%
density of value
flow efficiency is the density of value transfer
-> not slowing down the delivery to take up more time
Model: value transfer - resource vs flow efficiency
increase flow efficiency
reduce units in process by eliminating the causes for the queues
reduce cycle time (eg. work faster)
add more resources
eliminate, reduce and manage variation