9 Lean measures to improve efficiency

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Roboyo

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1. PROCESS CYCLE TIME

This measures the time from when an item enters the process until it exits. By evaluating Process Cycle Time, you can identify opportunities to reduce the time it takes to complete a process and enhance consistency and efficiency among staff performance.

2. WORK-IN-PROCESS (WIP)

This is the amount of work currently in process but not yet completed. Excessive WIP leads to backlogs and poor service levels, while insufficient WIP may indicate that your process is not operating at maximum efficiency.

3. TAKT TIME

Often referred to as the heartbeat of the process, Takt Time represents the customer demand rate. To meet deadlines, the time needed to complete work at each station must be less than the Takt Time.

4. CAPACITY

This is the maximum output a process can deliver over a continuous period, including the resources required to meet demand. Overcapacity is wasteful, while undercapacity can result in lost business.

5. TIME TRAPS

Any process step or activity that causes a delay. Also known as ‘Waiting’ waste, these should be assessed to determine opportunities for removal.

6. PRODUCTIVITY

This is the ratio of the time it should take to complete processes to the actual time taken. 100% productivity is achieved when the actual time matches the expected time.

7. AVERAGE COMPLETION RATE (THROUGHPUT)

This is the average output of the process over a defined period. It helps inform your capacity and should ideally be consistent among different colleagues performing the same work. In a call center, this could be measured as Average Handle Time.

8. PROCESS CYCLE EFFICIENCY (PCE)

PCE measures how efficiently the process converts WIP into completed work. You measure the time it takes WIP to progress through the process.

9. SHRINKAGE/LOST WORKER TIME

This measures the time lost to non-work-related activities, such as holidays, training, meetings, sickness, breaks, and system downtime. It reflects the additional staffing required beyond core demand needs. Effective management of Shrinkage/Lost Worker Time can significantly boost efficiency.

Our nine measures to improve efficiency are not an exhaustive list by any means, but they provide a good starting point for improving efficiency in your organization.

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