The Basic Concepts Model - Analysis of a Single Product or Service

Do you have any Results of Transforming Organisations ?

Calling all Management Consultants, Organisational Experts, University Professors, Lean Professionals, CEOs and UK NHS Health Transformation Managers. Especially World Leaders from Harvard, Oxford, Cambridge, etc.

Please could you publish the results of some of your work ?. ie – Results of transforming organisations, reducing throughput time, improving service levels, reducing cost and improving employee morale, etc. For example, results of applying your knowledge and methods in organisations (Manufacturing, Services of Health). In particular there is a lot of discussion surrounding digital transformation. Do you have any results? Names and the identities of the organisations can be obscured.

Note – By Organisational transformation results I refer to transforming both supply chains and internal value adding capability including employee morale. An improvement in a single department or island of efficiency is not really considered an end-to-end transformation. As most readers already know the average value adding time in organisations is less than 15% (When a product is tracked) and I have recorded figures as low as 4% in UK Local Government so there is a lot of waste. I attach some results of applying Time Based Analysis below as an example of the magnitude of change expected.

The Importance of a Time Based Analysis Synchronisation Point.

This post discusses the importance of including a synchronisation point in my time-based analysis framework. The most important first objective within Production and Operations management is the synchronisation of information, people, materials and equipment. When this has been achieved fine tuning of processes such as the control of variation can begin.

Synchronisation of all the elements needed to add value within the shortest time frame is a very old problem, but it still exists today in most organisations. Good early examples of success can be found in the Japanese automotive industry but outside automotive, synchronisation of people, equipment, materials and information is poor and costs plus non-value adding time increase as a result. In my time-based analysis framework, I use a synchronisation point to force a reduction in throughput time. A powerful synchronisation point often used is the supply chain/first value adding operation date, this includes adopting pull type control and removing large amounts of non-value adding time. It can also be the time/date when a customer requests a product or service.

Once a synchronisation point becomes a measurement target a whole new World of focus and energy appears to radically improve performance.

Transforming Organisations – Time Based Analysis versus Lean.

If you had started to use time-based analysis to measure and transform your existing value adding capability and supply chain synchronisation in January 2022 you will now be seeing benefits like those listed below.

Time Based Analysis is really simple and powerful yet highly structured, track a product, service or health patient through the total inputs to outputs conversation system in your organisation and visually display the results. You will normally find very low value adding touch time, 4% to 15% is typical. Use my time based framework to display the results. Data is gathered by your value adding employees. More examples at www.drbobbarker.co.uk in the Forum section.

The analysis usually takes less than half a day per product or service. Expect to find a lot of waste and untapped potential even in so called Lean organisations. Also supply chains have been found to be very unsynchronised, typically when they are controlled by push methods, moving to pull type control can reduce inventory by up to 60%.

The Time Based Organisation: Recreating and Transforming Existing Organisations: Amazon.co.uk: Barker, Dr Robert C: 9798653501593: Books https://www.amazon.co.uk/dp/B08B4YCNLF

When organisations contain so much waste, why is more action not being taken to remove it?

We often see reports, especially in the UK, that an organisation or health department will need more funding because their services are failing to meet demand. However, when time based analysis is used in these organisations the typical results usually reveal that value is being added to products or services in less than 15% of the calendar time consumed. In local government services it has been found to be as low as 4%. (ie - 4 weeks of value adding work in 104 weeks of Calendar time consumed).

Time based analysis is simple to apply and provides a powerful and visual display of the existing organisations ability to add value to products or services, whilst at the same time measuring the synchronisation of supply chain inputs in relation to the actual need date. It is applied and used by teams of employees.

A lot of people might think they do not need to use time based analysis because they already use a range of Lean tools. However, they could be wrong because a lot of the organisations where poor value adding capability exists were already considered to be Lean.

Time Based Analysis and the Age of Self Development.

Very few managers and employees realise that by using their in-depth knowledge of value adding systems within an organisation (Production, Services or Health) as a basis for learning, they can transform both their own performance and the value adding capability within their area of work. Link all the areas together and you have transformed an entire organisation.

Self-learning and improvement are obtained when the end-to-end processes are visualised and recorded (Value adding time and the non-value adding gaps). Mapping the process on a calendar time line on CAD plotter paper is quite adequate. Viewing an organisation in this way usually reveals and identifies high amounts of NVA time and waste. Employees can then use their knowledge to remove large amounts of non-value adding time and waste.

Common reasons for poor operating performance and long throughput times are usually poor design, no design at all, over control, lack of respect for time and ERP/MRP push type control. Please carry out some self-development as soon as possible, you will be surprised by what you find. My findings are that when a single product or service is tracked – value adding time is between 4 and 15%.

Total Organisation Rough Cut Analysis is a Transformation Priority.

When a product or service is tracked through an organisation the value adding touch time is often very low. Large amounts of queuing and waiting time along with associated inventory have a big impact on costs and service delivery, yet total system analysis is often ignored.

In contrast to a structured global analysis that would identify weak areas, it can be seen that many people continue to opt for an isolated focus in a department or island of efficiency. Unfortunately, the results of applying these ad hoc methods for the last 40 years has not resulted in total company improvement. If you are in doubt, attach yourself to a product or service and measure the value adding time, it’s likely to be under 15%.

The reasons why total organisational analysis is ignored might be because there are few managers who have the authority or knowledge to span the supply chain and end to end processes. This is indeed a lot more difficult that doing work in a single department. Another weakness surrounds financial reporting, this does include the whole system but it cannot see the non value adding time and only measures outcomes from the exiting systems in place.

Time Based Analysis of Existing Operations Identifies Areas for Improvement and Removes Non Value Adding Time.

Time based analysis is a visually powerful transformation methodology that is used by value adding employees to reduce waste and non-value adding time in a wide range of organisations. It never fails to identify waste in all its forms. In sharp contrast to many “off the shelf - let’s try this or that” tools which a user tries to match to a problem, the basic concept of a time-based approach is “Analysis and identification of problems prior to corrective actions”.

Since most organisations add value to products or services in less than 15% of the time, they spend in the so-called value adding process, it is not difficult to make rapid improvements. It is true that results can be embarrassing good, but this should not deter you from taking action.

TBA has been applied in a wide range of industrial organisations, local and central government, health, housing, services, universities, etc. Size ranges extend from £500,000 to £28 Billion groups. Experience has shown that larger organisations always hold more waste. Ironically so-called Lean organisations also contain a lot of waste. More details and results at www.drbobbarker.co.uk in forum, basic concepts.

Research Supply Chain Update

About 15 years ago I was talking to a sales representative who worked for a global company that was a major national health service UK supplier. I was telling her about all the changes we were making in improving our supply chains within industry with pull type control and direct cell feeds, I asked her how they supplied the NHS. She replied by saying, don't mention Pull type control to the NHS Bob. We make a lot of money replacing out of date items.

In February 2022 I wondered if this was still the case and made some enquires and constructed a NHS supply model, I asked NHS Managers for clarification but there were no official replies.

There was however some feedback from NHS users. In the past bar codes expiries were only ever checked just before the patient received them so lots of expired product. GS1 barcoding is now used and we have a global standard, before that it was impossible to track product. The NHS didn’t like writing things off as it looked bad so it tended to go unrecorded

The question remains, has Push type control waste now been eliminated. Please advise via LinkedIn or drbobbarker.co.uk@gmail.com

Time Based Analysis – A Post for deeper thinking about transforming organisations.

Let’s assume you have been using Lean or numerous other tools and techniques for the last 40 years. Let’s assume you work in a multinational blue-chip org with a lot of analysists and accountants, there is always pressure to do better, but you can hide behind the figures.

All seems fine, but is it. Along comes Time Based Analysis that measures how well you add value in the time products or services spend in the organisation, measurement of the value adding touch time is between 4 and 15%, what has gone wrong? You suddenly think, what have we been doing for the last 40 years. We have been carrying out improvement projects in a department or around an island of efficiency and not the whole value adding process.

Suddenly you realise why Time Based Analysis always provides much better results, it measures the entire inputs to outputs process, including supply chain synchronisation. It is visually powerful and driven by the very people at each value adding stage. Now you have three options - 1. Do nothing, 2. Carry on looking at islands of efficiency, or 3. Use Time Based Analysis and really transform your organisation.

Transforming Organisations – Actions not Debates.

If your new Year 2022 resolution was to use time-based analysis to measure your existing value adding capability and supply chain synchronisation you will be seeing some benefits by now.

Its really simple and powerful, track a product, service or health patient through the total inputs to outputs conversation system in your organisation. You will normally find very low value adding touch time, 4% to 15% is typical. Use my time based framework to display the results. A wall chart (CAD plotter paper 1 metre high x 5 metres long) is adequate at this point. Data is gathered by your value adding (Coal face) employees.

The analysis usually takes less than half a day per product, etc. As the team are displaying the data ask them “What stops you doing the best days work you can” Expect to find a lot of waste and untapped potential even in so called Lean organisations. Also supply chains have been found to be very unsynchronised, typically if they are controlled by push methods, moving to pull can reduce inventory by up to 60%.

Its almost March 2022, so if you are using TBA, you will be seeing a lot of improvements.

Identifying Non-Value Adding Time and Poor Supply Chain Synchronisation.

Linking Problems to Solutions via Empowered Employees with In-depth Process Knowledge.

As most of us already know, a lot of waste exists in most organisations (All types in the £500,000 to £28 Billion range). Poor supply chain synchronization is common in ERP/MRP type push-controlled organisations, in addition if you attach yourself to a product, component part or service the value adding touch time is rarely above 15%.

These weaknesses can be removed and value adding capability improved by using a time-based analysis framework to identify problem areas visually and thus guiding value adding employees to systematically remove them. No consultants or software are needed because this powerful transformation methodology is wall map (Paper) based. Some knowledge of time-based mapping is needed but this can be easily understood by looking at examples and characteristics at www.drbobbarker.co.uk in Forum, Basic concepts and in the book.

Key words – Analysis prior to attempting corrective actions. Empowered employees. Visualisation of the total inputs to outputs process is very powerful. Time based analysis never fails to identify waste and untapped potential, even in so called Lean organisations. I would urge readers to carry out some analysis

Time based analysis - Measuring value adding capability and supply chain synchronisation.

Feedback suggests that some people are still unclear how my time based analysis framework is applied in organisations, this post is intended to provide further guidance.

The main characteristics of the method are –

1. Centre out analysis, a central synchronisation point in most organisations or (multiple points in the auto industry) supply chain and value adding operations are compressed towards the points. The synchronisation point is usually the date/time when a customer requests something or places an order. Analysing a product or service group usually takes less than a day.

2. Recording of value adding time and costs in relation to the amount of calendar time consumed.

3. A Line of value adding capability is used at the micro and macro stages, steeper is better. This is used at each process and later extends from the supply chain to the date of completion. An important measure of how much value is being added in a certain amount of time.

4. Division of (+) (Positive) value adding activity above the calendar time axis, and (-) (Negative) non value adding costs below the axis. If the negatives outweigh the positives, the organisation is in trouble.

Looking back at 60 years of organisational development – Prescriptive versus Analytical approaches.

Historical attempts to improve organisations have largely been prescriptive, indeed prescriptive off the shelf solutions are still discussed every day by consultants and CEOs.

The prescriptive approach follows along the lines of let’s try one of the 20 or so lean tools, or let’s try some scientific management, systems thinking, data mining or digital or maybe we need team building. We can see that this approach attempts to get a proposed tool or technique to solve a yet unidentified problem. History shows us this has not really been a good way to improve organisations since in 2022 value adding capability is still very low (outside of automotive).

Surprisingly, analysis (that is very powerful) prior to unclear or blurred implementations, is mostly ignored.

Results of analysis provides knowledge and guidance. The analytical approach v the prescriptive identifies non value adding time, weaknesses and constraints that need attention. This approach is far more structured, in my experience, time-based analysis always identifies waste and untapped potential and is better than guesswork.

It remains a mystery why so many still attempt to use off the shelf solutions without any prior analysis of needs when success is limited.