Bob Barker’s Post

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The Control of Non-Value Adding Time – Service and Cost Impact – A Discussion. Eliminating non value adding time can transform an Organisation but it is often ignored. Three scenarios might aid our understanding – 1.     Most manufacturing organisations focus on costs and profit, but not time consumption. Track a product through the end-to-end process, value adding touch time is less than 15%. Throughput time is long, costs are higher and customer service suffers. 2.     UK Local Government Services. Products and profits do not exist, but there are budgets and cost limits. Value adding times as low as 4% have been recorded, staff costs per unt of work are higher. Customers and the UK tax payer suffer. 3.     The UK NHS Health Patient Journey. In theory customer service is vital. In practice throughput times and patient queues are both long. Value adding touch time in the end-to-end patient journey is typically between 8 and 14%. In all the above cases the Management teams will default to financial measures and controls, but the control of non-value adding time is never mentioned. Conclusion. There is a massive difference between controlling time at the process island of efficiency and controlling the total calendar time consumed by the product, service or patient journey. #executivesandmanagement

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