The two paths

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  • Today I will talk about the two paths,I will talk about the two different paths, or business strategies if you will, to strive for the process efficiency Nirvana.
  • I will start with the path of high resource efficiency first.On this path we try to increase resource efficiency first and then we try increase flow efficiency.
  • An example of high resource efficiency process could be a steel mill.As you may imagine it is very expensive to heat up and keep the smelting furnace hot.
  • We therefor try to have that smelting furnace hot and busy a much as possible.We optimize for high resource efficiency of the furnace
  • To make sure the furnace is busy we typically need to queue up work in front of the furnace so it will never run out of work.And we probably don’t mind having some finished goods in inventory after the furnace as well.
  • In knowledge work it could look something like this.To make sure the workers are busy we need to queue up workWork will be waiting for the workers.
  • This path, or business strategy, is what I call the path of the Dark Side.And as master Yoda is saying “Once you start down the dark path, forever will it dominate your destiny.”
  • On the path of the Dark Side you will have lots of Work In Process, high water level.It will be harder to identify the real problems in the process.And if you can’t identify your problems it is hard to remove them.
  • On this pathyou will typically lots of red bricks, waiting time. Waiting time then adds to thelead timeLong lead times and queued work also tend to add non value adding work, yellow bricks, to the process.
  • As many companies has discovered, moving from low towards high flow efficiency when you operate in a high resource efficiency state it is usually very hard so they tend not to do it.
  • The other path is what I call the path of the ForssWith this business strategy we focus on flow efficacy first before increasing resource efficiency
  • This strategy means that we try to optimize fast delivery to the customer.We focus on creating true value to the customer with a short lead time.
  • An example of such a process could be your local fire brigade.When a fire breaks out you want the fire brigade to arrive as fast as possible to start putting out the fire
  • You are willing to pay the fire fighters do low priority work and play floor hockey(as the do in Sweden) as long as they drop it as soon as the fire alarm goes off.
  • In knowledge work it could look something like this.To make sure the high priority work is always worked on you try to avoid queues
  • You try to have the workers ready as soon possible when the work arrives.Instead of work waiting for the workers. The workers would be waiting for the work.
  • As we lower the water level, Work In Process, it will become easier to find the problems in your process so you can improve it even more.
  • On the path of the Forss you will not see as much waiting, red bricks.You will have shorter lead times and less non value added work, yellow bricks.
  • We all have a choice.What path, business strategy, will you and your organization choose?The path of the Dark Side or the path of the Forss?
  • The Forss runs strong in this community. Pass on what you have learned.May the Forss be with you!
  • The two paths

    1. 1. LeanKanbanNorth America 2013The two pathsCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    2. 2. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    3. 3. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    4. 4. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    5. 5. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    6. 6. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    7. 7. “Once you start down the darkpath, forever will it dominateyour destiny.”The path of the Dark SideCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    8. 8. Work In ProcessCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    9. 9. Non value adding: Wait timeNon value adding: Required wasteValue adding: Actual demandCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    10. 10. STOPCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    11. 11. The path of the ForssCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    12. 12. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    13. 13. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    14. 14. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    15. 15. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    16. 16. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    17. 17. Work In ProcessCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    18. 18. Non value adding: Wait timeNon value adding: Required wasteValue adding: Actual demandCreated by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    19. 19. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
    20. 20. Håkan Forsshakan.forss@avegagroup.se@hakanforsshttp://hakanforss.wordpress.comMay the Forss be with you!Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

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