Model: flow efficiency

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

(src: Book: This is LEAN - Niklas Modig & Par Ahlstrom)

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