this_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig
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====== "This is Lean: Resolving the Efficiency Paradox" | ====== "This is Lean: Resolving the Efficiency Paradox" | ||
- | ====== Reference ====== | ||
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- | [[https:// | ||
====== Review and Notes ====== | ====== Review and Notes ====== | ||
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* Cycle time is the average time between two flow units’ completing the process and refers to the pace at which flow units move through the process. | * Cycle time is the average time between two flow units’ completing the process and refers to the pace at which flow units move through the process. | ||
- | The book then looks at the theory of constraints - the law of bottlenecks states that throughput time in a process is primarily affected by the stage of the process that has the longest cycle time | + | The book then looks at the theory of constraints - the law of bottlenecks states that throughput time in a process is primarily affected by the stage of the process that has the longest cycle time. |
Processes with bottlenecks have two key characteristics: | Processes with bottlenecks have two key characteristics: | ||
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These negative effects result in three “sources of inefficiency.” The first of these sources is related to people’s ability to deal with long waiting times. Secondly the non-fulfillment of a need can create new types of needs, which in turn create new needs. In other words, there is a chain reaction. Thirdly waiting time closes important windows of opportunity. Fourthly you create inventory and inventory requires additional resources. | These negative effects result in three “sources of inefficiency.” The first of these sources is related to people’s ability to deal with long waiting times. Secondly the non-fulfillment of a need can create new types of needs, which in turn create new needs. In other words, there is a chain reaction. Thirdly waiting time closes important windows of opportunity. Fourthly you create inventory and inventory requires additional resources. | ||
- | To understand the first and second order effects, take your email example. Too many emails trigger stress Email is a wonderful invention, but an inbox with two hundred | + | To understand the first and second order effects, take email inbox processing, for example. Too many emails trigger stress. Email is part of what we do, but an inbox with 200 unsorted emails can be somewhat overwhelming. Where do you start? The primary need is to answer important emails. However, the large number of emails creates a secondary need for a strategy to sort emails. One strategy could be to address the emails in date order, while another could be to start with the most important people first. Or perhaps you could look for “flagged” messages or discard those emails on which you have only been copied. Whatever method you use, sorting, structuring, |
- | But there is more to it than that - another source of inefficiency: | + | But there is more to it than that - another source of inefficiency: |
This helps us understand why we need to focus on flow efficiency and, when we do, we often also improve resource efficiency. Resource efficiency improves because we don't work on things that are caused by long processing teams - these secondary effects. | This helps us understand why we need to focus on flow efficiency and, when we do, we often also improve resource efficiency. Resource efficiency improves because we don't work on things that are caused by long processing teams - these secondary effects. | ||
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The authors then build a model to explain what it means to be lean - called the " | The authors then build a model to explain what it means to be lean - called the " | ||
- | {{ :wiki:efficiency_matrix.png? | + | {{ efficiency_matrix.png? |
Efficient islands In the top left-hand corner of the matrix is a state we call efficient islands. In this state, resource efficiency is high and flow efficiency is low. The organization consists of sub-optimized parts that operate in isolation, where each part works towards maximizing its resource utilization. Through the efficient use of its own resources, each part contributes by lowering the costs for the goods or services being produced. However, efficient utilization of resources comes at the expense of efficient flow. Flow efficiency for every individual flow unit is low. In manufacturing, | Efficient islands In the top left-hand corner of the matrix is a state we call efficient islands. In this state, resource efficiency is high and flow efficiency is low. The organization consists of sub-optimized parts that operate in isolation, where each part works towards maximizing its resource utilization. Through the efficient use of its own resources, each part contributes by lowering the costs for the goods or services being produced. However, efficient utilization of resources comes at the expense of efficient flow. Flow efficiency for every individual flow unit is low. In manufacturing, | ||
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In order to achieve the pull system, Toyota mapped out the entire production process. The needs of external customers were the trigger in a long chain of value-adding activities. With this customer-orientated view, Toyota’s goal was to maximize flow through the process: a fast information flow in one direction and a fast product flow in the other. Toyota wanted to avoid having work-in-progress between the steps in the production process and strived to eliminate anything that could inhibit the flow through the process. All forms of inefficiency or waste that did not add value to the product were eliminated to improve flow. | In order to achieve the pull system, Toyota mapped out the entire production process. The needs of external customers were the trigger in a long chain of value-adding activities. With this customer-orientated view, Toyota’s goal was to maximize flow through the process: a fast information flow in one direction and a fast product flow in the other. Toyota wanted to avoid having work-in-progress between the steps in the production process and strived to eliminate anything that could inhibit the flow through the process. All forms of inefficiency or waste that did not add value to the product were eliminated to improve flow. | ||
- | {{tag> | ||
+ | ====== Want to Know More? ====== | ||
+ | |||
+ | * [[https:// | ||
+ | * [[https:// | ||
+ | |||
+ | {{tag> | ||
- | ~~LINKBACK~~ | ||
- | ~~DISCUSSION~~ |
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