Flow Efficiency is an incredibly powerful improvement driver. It shows you how efficient the work is flowing through your value stream. The status quo is still around maximising the resource allocation and efficiency. Organisations are too focused on that and they forget to look to the work. The formula to find the flow efficiency is simple: touch time, divided by lead-time, times 100%. It shows you the proportion of time you spend adding value to a piece of work in comparison with the lead time. The commonly observed flow efficiency in traditional organisations is around 15%, which means that, on average, 85% of the time every piece of work is actually idling in queues, accumulating waiting time. That’s shocking!
Most of the time, organisations are trying to increase efficiency on the value added time, forgetting that the waiting time, is where we have the biggest room for improvements. This talk will show you how to increase your flow efficiency by identifying and fixing common sources of waiting time.