Niklas Modig

This book is relevant to any kind of business and is currently being used by a number of multi-national companies, including AstraZeneca, Ericsson, Scania and Volvo.

Resolving the Efficiency Paradox

This is Lean

Peter Polgar

* Resource efficiency (focus on organization's internal needs via resource utilization) vs flow efficiency (focusing on how fast a flow unit is served, so on customers)
* Flow efficiency is value adding activity in relation to throughput time
* Process laws: Little's law (throughput time = flow units in process * cycle time), the law of bottlenecks (throughput time increases if there are bottlenecks), the law of the effect of variations on processes (throughput time increases as variations increase).
* To improve flow efficiency: reduce number of flow units in process, work faster, add more resources, reduce variations
* Efficiency paradox: focusing on resource efficiency tends to increase the amount of work to do via secondary needs developing that is superfluous work.
* Lean is not a collection of tools or methods, rather an operating strategy system.
* The efficiency matrix helps in understanding how leans helps in continuous improvement: optimizing for either flow or resource efficiency.

This is Lean Resolving the Efficiency Paradox

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