Calculate Process Efficiency

Type: Process
Sources: http://www.shmula.com/458/the-hidden-factory-would-the-customer-pay-for-that

Gist

to find out, where in a process you can improve efficiency, with respect to added value to the customer

Entry Conditions

Process DEFINED AS a systematic chain of activities with a customer observable outcome.
Note: this may be a use case, a scenario used to plan the user experience for a product, a company's process chart …

Process efficiency DEFINED AS value adding activities in a process divided by all the activities, in seconds, minutes, hours, days …
Note: You could also measure it in money, or people, or other resources.

Steps and Notes

S1: Plot the process, maybe using a UML activity diagram

S2: For each activity in the diagram, decide if it's either

  • adding value to the customer,
  • not adding value to the customer, but is absolutely necessary, or
  • not adding value to the customer

S3: Measure with a stopwatch how long each activity takes.

S4: Sum the measured times for each category of S2

S5: Divide the measurement for the 'adding value'-category by the sum of S4, that's your Process Efficiency.

  • Note: Most likely you will come up with a number smaller than 1, because of the 'not adding value' activities that are necessary.
  • Note: the 'not adding value' category is the cost you bear on your customer, but does not add any value to the customer. (uh!)
  • Note: Obviously, from this point on work to eliminate not adding value activities. Or at the very least reduce the time needed for them.

Exit Conditions

One may exit the process, if…

Quotes

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