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direct: eg. find out if I have cancer indirect: eg. feel safe, be met professionally, understand and be informed -> you can add value by addressing indirect needs Distinction_ Secondary vs indirect needs (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
chain of causes over-focus on resource efficiency worse flow efficiency secondary needs superfluous work (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
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 unit material (material processed and assembled, tests into test results, …) information (eg. permission requests, referral letters, …) people: (eg. customers in theme park, patients, …) Model_ value transfer - resource vs flow efficiency (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
Primary needs the reason the customer makes contact with he organization Secondary needs secondary needs arise as a consequence of the organisation's failure to satisfy the primary need of the customer cause of secondary needs Model_ efficiency paradox Distinction_ Secondary vs indirect needs (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
What is resource efficiency a measurement of how much a resource is utilized in relation to a specific time period example resource: MRI scanner Time resources is utilized: 6 hours Time period: 24 hours Resource efficiency 6h / 24h = 25% Why care about resource efficiency? Opportunity cost the loss made by not utilizing resources to the fullest we could have used the money spent on that resource on something else [[model-value-transfer-resource-vs-flow-efficiency....
sources of variation resources (eg. experience of staff, variation in machines, break down, …) flow units (eg. variation in customer’s direct or indirect needs, human error) external factors (variation in customer demand) (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
Model: superfluous work work devoted to taking care of secondary needs superfluous work is a very sophisticated form of waste, since we often fail to realize that it is waste. We think we are adding value, but we are not. causes of secondary needs Model_ 3 sources of inefficiency example: managing receipts (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
value transfer when one side (resources) adds value and the other side (the flow unit) receives value high resource efficiency: high % of value adding time high flow efficiency: high % of value receiving time (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
most organisations will find it challenging to define process (and therefore throughput time) as starting when a need arises and ending when the need is fulfilled. (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)