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--- this_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig [2016/10/31 09:13] – [Reference] hpsamios
+++ this_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig [2016/11/02 10:12] – hpsamios
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 I thought this was a great book, a fabulous introduction to help you understand what lean is all about and, just as importantly, what it is not. It helps in understanding of Little's Law, Theory of Constraints, and why Flow Efficiency (and therefore "lean") is changing how we think about things.
-The base premise is that lean is about "flow efficiency" as opposed to resources efficiency in how work gets done. Flow efficiency focuses on the amount of time it takes from identifying a need to satisfying that need, whereas resource efficiency focuses on efficiently using the resources that add value within an organization.
+The base premise is that lean is about "flow efficiency" as opposed to resources efficiency in how work gets done. Flow efficiency focuses on the amount of time it takes from identifying a need to satisfying that need, whereas resource efficiency focuses on efficiently using the resources that add value within an organization. What is interesting is that when you focus on flow efficiency you also improve resource efficiency in many cases because work which results from being resource efficient (and not delivering on customer needs - extra work that is created) means we can free up some people to do work that is more aimed at what the customer needs.
 Why is this important? For more than two hundred years, industrial development has been built around increasing the utilization of resources. Efficient use of resources has long been the most common way of looking at efficiency. It continues to dominate the way in which organizations in different industries and sectors are organized, controlled, and managed. From an economic perspective, it makes sense to strive for the most efficient possible use of resources. The reason for this is the opportunity cost.