How EFFECTIVE& EFFICIENT do you consider your organisation to be?
As you can see from the following table, TIME can be wasted in many ways. And as the saying goes, TIME is MONEY.
How much TIME are you and your organisation wasting and what are the consequences?
DEAD TIME |
Type of ‘WASTED TIME’ |
EXAMPLES |
D |
Defects |
Doing things incorrectly the first time |
Correcting supply of defective product to customer |
||
E |
Excess processing |
Performing activities that are not required by customers or in an ineffective way leading to increased costs – without any benefit |
A |
Abilities |
Failure to utilise people or other abilities (e.g. IT) This is a ‘favourite’ for wasting time! |
D |
Duplication |
Doing things twice – and involving more people |
T |
Transportation |
Unnecessary transportation of product. How complicated is your supply chain? How much stock are you holding to support this? |
I |
Inventory & waiting |
Waiting for activities to happen and building up inventory to manage the 'waiting' periods |
M |
Motion |
Unnecessary movement of people – from meeting to meeting, from building to building, country to country |
E |
Excess production |
Excess production before it is needed. Linked to holding excess inventory (with its associated costs and reduced cash flow) |