Value Add Very Low Percentage of Cycle Time PCE%

When you first explain that the amount of value add in a process is often less than 5% the rest being waste you get some odd looks as if "that can't be possible surely".

Well, if you take the total cycle time i.e. the time the process takes from initiation by a customer until when the customer considers it finished and then see what time is spent adding value from the customers perspective then 5% in service processes is the norm. Sound bad well it is.

This is known as the process cycle efficiency figure PCE %

Why am I thinking of this today? Well my son has need of some orthodental work and we have been for yet another appointment.

This all started five months ago, we still await some actual work to be done, the rest has been in consultations and differences of opinions across three health silos.

In fact the value add so far is about 1.5 hours i.e. time in the chair so to speak; the rest is in waiting caused by queing and unfortunately delays caused by defects in process due to poor communication between seperate dentists and othodontists working in different practices.

So, even by being kind in removing weekends and non working hours! the process cycle efficiency is at about 0.18% and we still haven't achieved much yet either!

The waste to the NHS is another matter; poor letter writing and mis-communication, confusion as to who should be responsible for doing the x rays, asumptions of what has done whom and what each party thinks the other is responsible for adds to the list of delays and obvious cost of this "should be" simple process.

No wonder the NHS costs so much. Why of why do they make such a meal of everything!

So 5% PCE in service industries is quite good really!!

Answer: improve communication and manage the process from end to end not within silos.

IGrafx Reference Models

I had a call from Trevor Moore of IGX solutions today he informs me IGrafx are providing some reference models in their process modelling suite.

The models are for ITIL and SAP they are also working on a Solvency 2 model.

This is going to save loads of time for people implementing one initiative or another rather than having to start from scratch and pay the high consulting bills for the IP. this approach looks an interesting development.

Distance Learning

I have been experimenting with delivering a version of the business architecture course at a distance. The issue has always been that when individuals want to enrol there are never enough at the same time to make a course economic for delgates and the trainer alike.

So by offering a version of 121 seminars and material on an learning management system it means the problem can be solved.

I have mentored one client recently and it seems to be well received. Skype as a delivery method is a bit flaky though with screen control freezing to much but as a first try all is going well. The delegate is based over 250 miles away and that fact alone proves the concept.

Process Gets the Blame

I am working with an organisation that has very little process, well fragments - dotted around here and there. They think they have process but they don't really. Some low level physical work flows too wordy too granular and certainly no big picture. Well meaning people changing stuff with unintentional knock on elsewhere in the organisation organic growth not change by design.

When things go wrong and you say its "because of lack of process" the reply is we have to much process that is the problem!

The issue is that what they blame as process is bad design and poor old process as a discipline gets the blame - it is difficult when people just don't know what looks good or for that matter what looks bad!

Are pockets of bad process worse than no process at all?

Networking Cynicism

As the downturn continues I am not surprised when as network colleagues get redundant they suddenly get in contact; this is happening about once a week at the moment.

Often you don't hear from people for years and then guess what their on the phone. The best ones are senior perm's that never returned your calls while trying to get business when they were in a position of power and now of course they want your help. How the mighty do fall!

I must admit is takes restraint not to tell them a few facts however in the preservation of the network- you never know when it works the other way- one has to hold ones tongue!

If people want the benefits of networking you think they would see the benefit of keeping in touch when times are good as it does look so cynical otherwise!