SlideShare a Scribd company logo
20 
images 
20 
seconds
Any company 
value value value 
People & 
Resource 
People & 
resource 
People & 
resource 
The basic principle of a company is that it increases the value of a product by applying people and 
resources. 
There are 2 ways to look at the efficiency of a company: 
• We could look from the side, and observe if value is applied to the product all the time 
• Or we could look from the bottom, and see if all people and resources are optimally used
Let’s look from the bottom – the resource efficiency view. 
This machine is a Magneto resonance scanner – a very expensive machine. 
Hospitals make it profitable by making sure it is being used all the time – causing waiting lists for the patients. 
This is typical for resource efficiency: resources are busy all the time, but the flow object will move slower.
If we look from the side at the company we get the flow efficiency view. 
In this case nobody is interested that this team of engineers is busy all the time. 
What is most important is that the car can leave the pits as soon as possible. 
This is typical for flow efficiency view: the flow object will move fast, but resources are not busy all 
the time.
Assembly lines as Henry Ford introduced combine resource efficiency and flow efficiency: 
The belt is moving all the time, and people are working all the time 
The drawback of this system is that any kind of variance would stop the belt and efficiency gets very 
low.
So let’s summarize: 
• There are 2 ways to look at efficiency: flow efficiency and resource efficiency 
• It is possible to achieve both at the same time, but in these cases your efficiency is very vulnerable 
for variance. 
Now that we have understood this, let’s look at the question ‘what makes things flow’?
Let’s first look at the flow object itself… 
How can we shape it so that it flows easily? 
These are marbles. They behave like a fluid since the particles are small, and have a low friction to a 
surface. Also, they are all of similar size. 
Can you see the similarities to user stories?c
So if we make our flow object fluid, do we get flow automatically? 
Not quite. Something needs to make the flow object move. 
Let’s call it potential energy. 
In the picture here up to this point something has been pushing us – from now on it will be pull.
So is it up to us to decide if we apply push or pull as potential energy? 
Sometimes yes. 
In this case:no. 
Overall you can say: whenever you can implement pull, you should do it. 
Pull is easier when it comes to dimensioning bottlenecks. We’ll see this later on.
One thing is still missing: the flow object needs to flow THROUGH something – a medium. 
A river is a suitable medium for the transport of water. 
The river will make sure your water gets from A to B. 
However, for different flow objects, you will need a different medium
Information could also be a flow object. 
Rivers are not suitable for transporting information – this is a much more suitable medium. 
The point is – you need to optimize your medium so that if fits your flow object. 
Note that also information needs potential energy to flow: just ‘putting something on the web’ does 
not make information flow.
Flow = 
+ + 
So let’s summarize what possibilities we have to make something flow: 
• We can make the flow object ‘fluid’ 
• There needs to be potential energy: push or pull 
• We have a suitable medium 
Now that we have seen what makes things flow, let’s have a look on what can go wrong with flow?
Every process has got a bottle neck. 
Maybe the bottleneck is not even a problem – if the throughput is low enough to fit through it. 
This is also the advantage of a ‘pull system’ – the throughput cannot be higher than the bottleneck 
allows. 
But if the bottleneck IS a problem, what will happen to our flow objects?
What that can happen is what you see in this picture: queuing 
Looking at resource efficiency, we would say the road is fully utilized so we are very efficient. 
But of course in this situation, nobody is interested in resource efficiency.
But not only queuing can happen, this picture shows a different possible scenario: overflow 
Depending on the nature of your flow object and medium, overflow occurs rather than queuing. 
When overflow happens: 
• The quality may be negatively affected since things get done too quickly. 
• The medium gets damaged since e.g. people get stressed.
Is there anything else that can go wrong with flow, apart from obstructions or bottlenecks? 
Here everything seemed to be in place: 
• We have a fluid 
• We have potential energy 
• We have a good medium 
But the temperature is not right. 
In organizations , temperature means motivation, stress level, having the right tools etc.
But let’s assume that everything for flow is in place, including the right temperature. 
Then, sometimes a situation like this happens: some flow object is not obeying the normal rules. 
We often talk about the need for flexibility, but what we see here is that flexibility, at the same time, is 
a variance that will potentially lower flow efficiency.
This is what happens if we only concentrate on flow optimization: 
this may mean that some part of the system has at a certain time no flow units to process. This 
effect is called ‘starvation’. 
This does not mean that there is nothing to do. We can use this time to improve the flow of the 
system.
In a flow optimized system, if one step in the system does not deliver in time, all steps behind them in 
the flow would face starvation. 
One way to avoid this is to introduce buffers in the stream 
Buffers allow the downstream parts to continue to work for some time. 
However, we need to be very aware that buffers increase the overall lead-time!
summary 
H 
i 
n 
d 
e 
r 
e 
r 
s 
So again let’s summarize what what hinders flow: 
• Bottlenecks can cause queuing or overflow 
• A wrong environment can completely stop the flow 
• Exemptions and ‘flexibility’ impact flow directly 
Finally, we have seen that we need to find the right balance between short leadtime and starvation 
risk (flow vs. resource efficiency)
attributions 
› Slide 1: Nearsblankpuzzle / Deviantart / CC-BY-SA-3.0 
› Slide 3: Mj-bird / Wikimedia Commons / CC-BY-SA-3.0 
› Slide 4: Bert van Dijk / Wikimedia Commons / CC-BY-SA-2.0 
› Slide 5: Kyle Harris / Flickr / CC-BY-2.0 (cropped, recolored) 
› Slide 7: caiophox / Deviant Art / CC-BY-3.0 
› Slide 8: Jamie McCaffrey / Flickr / CC-BY-2.0 
› Slide 9: David Precious / Flickr / CC-BY-2.0 
› Slide 10: Signalhead / Wikimedia Commons / CC-BY-SA-3.0 (changed aspect ratio) 
› Slide 11: Rafael Matsunaga / Flickr / CC-BY-SA-2.0 (cropped) 
› Slide 13: werner22brigitte / pixabay / Public Domain CC0 
› Slide 14: Christian Haugen / Flickr / CC-BY-2.0 
› Slide 15: DVIDSHUB / Wikimedia Commons / CC-BY-2.0 
› Slide 16: Frank Kovalchek / Flickr / CC-BY-2.0 
› Slide 17: Thomas Leuthard / Flickr / CC-BY-2.0 (cropped) 
› Slide 18: Josh Sommers / Flickr / CC-BY-2.0 (changed aspect ratio) 
› Slide 19: Ikas.us / Wikimedia commons / CC-BY-2.0 (cropped) 
› Slide 20: laobc / Openclipart / Public Domain CC0

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What is Flow? The lean principle demystified

  • 1. 20 images 20 seconds
  • 2. Any company value value value People & Resource People & resource People & resource The basic principle of a company is that it increases the value of a product by applying people and resources. There are 2 ways to look at the efficiency of a company: • We could look from the side, and observe if value is applied to the product all the time • Or we could look from the bottom, and see if all people and resources are optimally used
  • 3. Let’s look from the bottom – the resource efficiency view. This machine is a Magneto resonance scanner – a very expensive machine. Hospitals make it profitable by making sure it is being used all the time – causing waiting lists for the patients. This is typical for resource efficiency: resources are busy all the time, but the flow object will move slower.
  • 4. If we look from the side at the company we get the flow efficiency view. In this case nobody is interested that this team of engineers is busy all the time. What is most important is that the car can leave the pits as soon as possible. This is typical for flow efficiency view: the flow object will move fast, but resources are not busy all the time.
  • 5. Assembly lines as Henry Ford introduced combine resource efficiency and flow efficiency: The belt is moving all the time, and people are working all the time The drawback of this system is that any kind of variance would stop the belt and efficiency gets very low.
  • 6. So let’s summarize: • There are 2 ways to look at efficiency: flow efficiency and resource efficiency • It is possible to achieve both at the same time, but in these cases your efficiency is very vulnerable for variance. Now that we have understood this, let’s look at the question ‘what makes things flow’?
  • 7. Let’s first look at the flow object itself… How can we shape it so that it flows easily? These are marbles. They behave like a fluid since the particles are small, and have a low friction to a surface. Also, they are all of similar size. Can you see the similarities to user stories?c
  • 8. So if we make our flow object fluid, do we get flow automatically? Not quite. Something needs to make the flow object move. Let’s call it potential energy. In the picture here up to this point something has been pushing us – from now on it will be pull.
  • 9. So is it up to us to decide if we apply push or pull as potential energy? Sometimes yes. In this case:no. Overall you can say: whenever you can implement pull, you should do it. Pull is easier when it comes to dimensioning bottlenecks. We’ll see this later on.
  • 10. One thing is still missing: the flow object needs to flow THROUGH something – a medium. A river is a suitable medium for the transport of water. The river will make sure your water gets from A to B. However, for different flow objects, you will need a different medium
  • 11. Information could also be a flow object. Rivers are not suitable for transporting information – this is a much more suitable medium. The point is – you need to optimize your medium so that if fits your flow object. Note that also information needs potential energy to flow: just ‘putting something on the web’ does not make information flow.
  • 12. Flow = + + So let’s summarize what possibilities we have to make something flow: • We can make the flow object ‘fluid’ • There needs to be potential energy: push or pull • We have a suitable medium Now that we have seen what makes things flow, let’s have a look on what can go wrong with flow?
  • 13. Every process has got a bottle neck. Maybe the bottleneck is not even a problem – if the throughput is low enough to fit through it. This is also the advantage of a ‘pull system’ – the throughput cannot be higher than the bottleneck allows. But if the bottleneck IS a problem, what will happen to our flow objects?
  • 14. What that can happen is what you see in this picture: queuing Looking at resource efficiency, we would say the road is fully utilized so we are very efficient. But of course in this situation, nobody is interested in resource efficiency.
  • 15. But not only queuing can happen, this picture shows a different possible scenario: overflow Depending on the nature of your flow object and medium, overflow occurs rather than queuing. When overflow happens: • The quality may be negatively affected since things get done too quickly. • The medium gets damaged since e.g. people get stressed.
  • 16. Is there anything else that can go wrong with flow, apart from obstructions or bottlenecks? Here everything seemed to be in place: • We have a fluid • We have potential energy • We have a good medium But the temperature is not right. In organizations , temperature means motivation, stress level, having the right tools etc.
  • 17. But let’s assume that everything for flow is in place, including the right temperature. Then, sometimes a situation like this happens: some flow object is not obeying the normal rules. We often talk about the need for flexibility, but what we see here is that flexibility, at the same time, is a variance that will potentially lower flow efficiency.
  • 18. This is what happens if we only concentrate on flow optimization: this may mean that some part of the system has at a certain time no flow units to process. This effect is called ‘starvation’. This does not mean that there is nothing to do. We can use this time to improve the flow of the system.
  • 19. In a flow optimized system, if one step in the system does not deliver in time, all steps behind them in the flow would face starvation. One way to avoid this is to introduce buffers in the stream Buffers allow the downstream parts to continue to work for some time. However, we need to be very aware that buffers increase the overall lead-time!
  • 20. summary H i n d e r e r s So again let’s summarize what what hinders flow: • Bottlenecks can cause queuing or overflow • A wrong environment can completely stop the flow • Exemptions and ‘flexibility’ impact flow directly Finally, we have seen that we need to find the right balance between short leadtime and starvation risk (flow vs. resource efficiency)
  • 21. attributions › Slide 1: Nearsblankpuzzle / Deviantart / CC-BY-SA-3.0 › Slide 3: Mj-bird / Wikimedia Commons / CC-BY-SA-3.0 › Slide 4: Bert van Dijk / Wikimedia Commons / CC-BY-SA-2.0 › Slide 5: Kyle Harris / Flickr / CC-BY-2.0 (cropped, recolored) › Slide 7: caiophox / Deviant Art / CC-BY-3.0 › Slide 8: Jamie McCaffrey / Flickr / CC-BY-2.0 › Slide 9: David Precious / Flickr / CC-BY-2.0 › Slide 10: Signalhead / Wikimedia Commons / CC-BY-SA-3.0 (changed aspect ratio) › Slide 11: Rafael Matsunaga / Flickr / CC-BY-SA-2.0 (cropped) › Slide 13: werner22brigitte / pixabay / Public Domain CC0 › Slide 14: Christian Haugen / Flickr / CC-BY-2.0 › Slide 15: DVIDSHUB / Wikimedia Commons / CC-BY-2.0 › Slide 16: Frank Kovalchek / Flickr / CC-BY-2.0 › Slide 17: Thomas Leuthard / Flickr / CC-BY-2.0 (cropped) › Slide 18: Josh Sommers / Flickr / CC-BY-2.0 (changed aspect ratio) › Slide 19: Ikas.us / Wikimedia commons / CC-BY-2.0 (cropped) › Slide 20: laobc / Openclipart / Public Domain CC0

Editor's Notes

  1. Everybody is talking about Flow – but what does it mean to us? In this set of 20 slides I will show you pictures that explain why Flow is not a new ‘way of working’, but rather a different way of looking at efficiency. I will only talk about each picture for 20 seconds, so please pay close attention and try to stick with the flow
  2. The basic principle of a company is that it increases the value of a product by applying people and resources. There are 2 ways to look at the efficiency of a company: We could look from the side, and observe if value is applied to the product all the time Or we could look from the bottom, and see if all people and resources are optimally used
  3. Let’s look from the bottom – the resource efficiency view. This machine is a Magneto resonance scanner – a very expensive machine. Hospitals make it profitable by making sure it is being used all the time – causing waiting lists for the patients. This is typical for resource efficiency: resources are busy all the time, but the flow object will move slower.
  4. If we look from the side at the company we get the flow efficiency view. In this case nobody is interested that this team of engineers is busy all the time. What is most important is that the car can leave the pits as soon as possible. This is typical for flow efficiency view: the flow object will move fast, but resources are not busy all the time.
  5. Assembly lines as Henry Ford introduced combine resource efficiency and flow efficiency: The belt is moving all the time, and people are working all the time The drawback of this system is that any kind of variance would stop the belt and efficiency gets very low. At some point in time, the production time of the model T was 93 minutes, with a car leaving the factory every 3 minutes This system is optimized for building ONE type of car. There was no tolerance for variation  "Any customer can have a car painted any color that he wants so long as it is black" Back in 1926 it was not considered a problem that only one type of car is available. Nowadays that would not be an option
  6. So let’s summarize: There are 2 ways to look at efficiency: flow efficiency and resource efficiency It is possible to achieve both at the same time, but in these cases your efficiency is very vulnerable for variance. Now that we have understood this, let’s look at the question ‘what makes things flow’?
  7. Let’s first look at the flow object itself… How can we shape it so that it flows easily? These are marbles. They behave like a fluid since the particles are small, and have a low friction to a surface. Also, they are all of similar size. Can you see the similarities to user stories?
  8. So if we make our flow object fluid, do we get flow automatically? Not quite. Something needs to make the flow object move. Let’s call it potential energy. In the picture here up to this point something has been pushing us – from now on it will be pull.
  9. So is it up to us to decide if we apply push or pull as potential energy? Sometimes yes. In this case:no. Overall you can say: whenever you can implement pull, you should do it. Pull is easier when it comes to dimensioning bottlenecks. We’ll see this later on.
  10. One thing is still missing: the flow object needs to flow THROUGH something – a medium. A river is a suitable medium for the transport of water. The river will make sure your water gets from A to B. However, for different flow objects, you will need a different medium
  11. Information could also be a flow object. Rivers are not suitable for transporting information – this is a much more suitable medium. The point is – you need to optimize your medium so that if fits your flow object. Note that also information needs potential energy to flow: just ‘putting something on the web’ does not make information flow.
  12. So let’s summarize what possibilities we have to make something flow: We can make the flow object ‘fluid’ There needs to be potential energy: push or pull We have a suitable medium Now that we have seen what makes things flow, let’s have a look on what can go wrong with flow?
  13. Every process has got a bottle neck. Maybe the bottleneck is not even a problem – if the throughput is low enough to fit through it. This is also the advantage of a ‘pull system’ – the throughput cannot be higher than the bottleneck allows. But if the bottleneck IS a problem, what will happen to our flow objects?
  14. What that can happen is what you see in this picture: queuing Looking at resource efficiency, we would say the road is fully utilized so we are very efficient. But of course in this situation, nobody is interested in resource efficiency.
  15. But not only queuing can happen, this picture shows a different possible scenario: overflow Depending on the nature of your flow object and medium, overflow occurs rather than queuing. When overflow happens: The quality may be negatively affected since things get done too quickly. The medium gets damaged since e.g. people get stressed.
  16. Is there anything else that can go wrong with flow, apart from obstructions or bottlenecks? Here everything seemed to be in place: We have a fluid We have potential energy We have a good medium But the temperature is not right. In organizations , temperature means motivation, stress level, having the right tools etc.
  17. But let’s assume that everything for flow is in place, including the right temperature. Then, sometimes a situation like this happens: some flow object is not obeying the normal rules. We often talk about the need for flexibility, but what we see here is that flexibility, at the same time, is a variance that will potentially lower flow efficiency.
  18. This is what happens if we only concentrate on flow optimization: this may mean that some part of the system has at a certain time no flow units to process. This effect is called ‘starvation’. This does not mean that there is nothing to do. We can use this time to improve the flow of the system.
  19. In a flow optimized system, if one step in the system does not deliver in time, all steps behind them in the flow would face starvation. One way to avoid this is to introduce buffers in the stream Buffers allow the downstream parts to continue to work for some time. However, we need to be very aware that buffers increase the overall lead-time!
  20. So again let’s summarize what what hinders flow: Bottlenecks can cause queuing or overflow A wrong environment can completely stop the flow Exemptions and ‘flexibility’ impact flow directly Finally, we have seen that we need to find the right balance between short leadtime and starvation risk (flow vs. resource efficiency)