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this_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig [2018/02/21 05:19] – [Review and Notes] hpsamiosthis_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig [2023/03/03 10:09] (current) – external edit 127.0.0.1
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 ====== "This is Lean: Resolving the Efficiency Paradox" - Niklas Modig ====== ====== "This is Lean: Resolving the Efficiency Paradox" - Niklas Modig ======
  
-====== Reference ====== 
- 
-[[https://www.amazon.com/dp/B00JZZS7Q0/ref=r_soa_w_d|This is Lean: Resolving the Efficiency Paradox]] 
  
 ====== Review and Notes ====== ====== Review and Notes ======
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 The authors then build a model to explain what it means to be lean - called the "Efficiency Matrix". The efficiency matrix builds on the two forms of efficiency that were presented in the first part of this book and illustrates how an organization can be classified based on (a) low respective high resource efficiency and (b) low respective high flow efficiency. The authors then build a model to explain what it means to be lean - called the "Efficiency Matrix". The efficiency matrix builds on the two forms of efficiency that were presented in the first part of this book and illustrates how an organization can be classified based on (a) low respective high resource efficiency and (b) low respective high flow efficiency.
  
-{{ :wiki:efficiency_matrix.png?direct |}}+{{ efficiency_matrix.png?direct |}}
  
 Efficient islands In the top left-hand corner of the matrix is a state we call efficient islands. In this state, resource efficiency is high and flow efficiency is low. The organization consists of sub-optimized parts that operate in isolation, where each part works towards maximizing its resource utilization. Through the efficient use of its own resources, each part contributes by lowering the costs for the goods or services being produced. However, efficient utilization of resources comes at the expense of efficient flow. Flow efficiency for every individual flow unit is low. In manufacturing, this is represented by each component/product’s spending most of its time as inventory. In services, this is often represented in the form of unwanted waiting time during which the customer does not receive any value. Efficient islands In the top left-hand corner of the matrix is a state we call efficient islands. In this state, resource efficiency is high and flow efficiency is low. The organization consists of sub-optimized parts that operate in isolation, where each part works towards maximizing its resource utilization. Through the efficient use of its own resources, each part contributes by lowering the costs for the goods or services being produced. However, efficient utilization of resources comes at the expense of efficient flow. Flow efficiency for every individual flow unit is low. In manufacturing, this is represented by each component/product’s spending most of its time as inventory. In services, this is often represented in the form of unwanted waiting time during which the customer does not receive any value.
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 In order to achieve the pull system, Toyota mapped out the entire production process. The needs of external customers were the trigger in a long chain of value-adding activities. With this customer-orientated view, Toyota’s goal was to maximize flow through the process: a fast information flow in one direction and a fast product flow in the other. Toyota wanted to avoid having work-in-progress between the steps in the production process and strived to eliminate anything that could inhibit the flow through the process. All forms of inefficiency or waste that did not add value to the product were eliminated to improve flow. In order to achieve the pull system, Toyota mapped out the entire production process. The needs of external customers were the trigger in a long chain of value-adding activities. With this customer-orientated view, Toyota’s goal was to maximize flow through the process: a fast information flow in one direction and a fast product flow in the other. Toyota wanted to avoid having work-in-progress between the steps in the production process and strived to eliminate anything that could inhibit the flow through the process. All forms of inefficiency or waste that did not add value to the product were eliminated to improve flow.
  
-{{tag>Book Learning Improvement System Transformation Lean TPS Toyota Review}} 
  
 +====== Want to Know More? ======
 +
 +  * [[https://www.amazon.com/dp/B00JZZS7Q0/ref=r_soa_w_d|This is Lean: Resolving the Efficiency Paradox]]
 +  * [[https://www.youtube.com/watch?v=hGJpez7rvc0|The Efficiency Paradox - TEDx Talk - Niklas Modig]]
 +
 +{{tag>Book Learning Improvement System Transformation Lean TPS Toyota Review}}
  
-~~LINKBACK~~ 
-~~DISCUSSION~~ 
/home/hpsamios/hanssamios.com/dokuwiki/data/pages/this_is_lean_-_resolving_the_efficiency_paradox_-_niklas_modig.txt · Last modified: 2023/03/03 10:09 by 127.0.0.1