LIST
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)
Kingman’s formula: relationship between variation, resource efficiency and throughput time utilisation = resource efficiency (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
throughput time = flow units in process * cycle time eg. time for you to make it through airport security queue = ppl before you * avg time to check a person (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)
(Book_ This Is Lean - Niklas Modig) TL;DR Lean means valuing flow efficiency over resource efficiency Choosing for lean operations is a strategic choice with pros and cons. Maybe also Lean means valuing continuous small improvements over one big improvement. That continuous improvement is aimed towards the (impossible) ideal of 100% flow efficiency AND 100% resource efficiency. But favors flow efficiency, so it will focus first and focus more on flow efficiency....
March, black swan picture taken Call to action: work & school from home by the end of the week [ ] Article: Why your company isn’t profiting from remote productivity create connection between efforts and customer value Hawthorne effect: measuring something ups the numbers for a while because of the attention proxies -> maybe / maybe not? metrics between customer and team direct connection -> see lack of satisfaction...
Out-learn the competition Is learning and continuous improvement the main strategy? Out-produce the competition Is focussing on producing more, working harder, … the main strategy? (src: Book: Toyota Kata)
Book_ Do the Right Thing - James Parker Book_ The Cambridge Handbook of Expertise and Expert Performance - Ericsson, Hoffman Paper The role of deliberate practice in the acquisition of expert performance - Ericsson, Krape,_ Book_ Do the Right Thing - James Parker CEO of southwest airlines “i’m gonna tell you the secret, but it won’t hurt us because nobody is going to believe it.” Employees Customers stakeholders make money to stay in business > stay in business to make money...