Thursday, April 10, 2008

Calculate Process Efficiency

Name: Calculate Process Efficiency
Type: Process
Status: final
Version: 2008-04-10

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

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.

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.

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