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.