Flow efficiency measures a process’s efficiency by comparing the time spent actively working on it with the total time required to complete it. This measure can also measure an organisation’s smooth workflow, identifying potential delays, bottlenecks, or activities that are not contributing to the organisation’s performance. In its earliest form, flow efficiency can be traced back to early industrial engineering practices with roots in process improvement and lean manufacturing. Scientists have been practising scientific management since the early 20th century, thanks to Frederick Winslow Taylor, the father of the discipline. Taylor’s time and motion studies sought to optimise work processes by separating tasks into their constituent parts and minimising waste. Regarding process improvement, Taylor focused on task-level efficiency but laid the groundwork for more holistic approaches.
Various industries and organisational processes have adopted the concept of flow efficiency in recent years. Health care, finance, the service industries, and more use its principles to improve their workflow efficiency and effectiveness. Modern tools and technologies have made measuring and improving flow efficiency possible, offering deeper insights and more precise control of the process. To better understand flow efficiency, consider a scenario where a task moves through different process stages, such as design, development, testing, and deployment. Active work and waiting periods may occur as the task moves through each stage. Time spent actively working on a task refers to active work, while time spent waiting refers to time spent awaiting resources or other constraints. In order to calculate flow efficiency, divide the total active work time by the total cycle time (the sum of active work time and waiting time) and multiply by 100. A second approach involves combining flow efficiency with time-based process metrics. Among these factors are lead time, cycle time, and throughput. An analysis of these metrics provides a more comprehensive picture of efficiency. A task’s lead time is the total time it takes from its inception to its completion, while its cycle time is its actual working time. Task throughput measures how many tasks are completed in a given timeframe.
These metrics allow you to gauge how well work flows through the system and where delays or inefficiency occur. Alternative methods include calculating the ratio of value-adding time minus non-value-adding time rather than total cycle time. In this approach, activities that add value from the customer’s perspective must be clearly distinguished from those that do not. The efficiency of a process can be evaluated by comparing the proportion of time devoted to value-added activities versus the time devoted to non-value-added activities. The flow efficiency of a system can be predicted and enhanced using simulation and modelling methods. Models of the process and simulations of different scenarios allow organisations to test the effect of changes without interrupting their operations. Different flow efficiency strategies can be experimented with by identifying the most effective interventions before implementing them. An increase in flow efficiency indicates a more streamlined and efficient process with fewer delays and waste, which means that most of the time is spent on value-adding activities. In contrast, a low flow efficiency percentage indicates significant inefficiencies, with significant time lost to waiting and other non-productive tasks. Flow efficiency can be analysed holistically using these methods, as each provides different insights. In this way, organisations can develop a robust strategy for continuous improvement to ensure that their processes are efficient and aligned with business goals.
The goal of improving flow efficiency is to identify and mitigate these inefficiencies. Using techniques such as value stream mapping, process optimisation, and Kanban boards, organisations can better visualise and manage workflow, identifying bottlenecks and opportunities for improvement. Flow efficiency can increase productivity, lead times are shorter, and services and products are of higher quality. An additional dimension to flow efficiency is incorporating customer feedback and satisfaction metrics. In order to identify areas for improvement, it is vital to understand how efficiently the process meets customer expectations. Through this approach, improvements to flow efficiency are directly linked to customer value, ensuring that they contribute to better customer service.
Flow efficiency remains an essential metric in both lean and agile methodologies. Process improvement is continuously pursued to minimise waste and maximise customer value. In recent decades, flow efficiency has evolved into a more efficient, responsive, and customer-centric working style, influenced by ongoing innovation and the relentless pursuit of best practices.
