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From course:

Management 193

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Question:

Flow efficiency

Author: Sixten Bigner Af Klintberg



Answer:

Closely related to system efficiency, but the time factor is emphasized further. Flow efficiency is the ratio between valued-adding time (time spent working toward completing task), and lead time (time it takes from the order being placed to the customer receiving it). So, it includes both efficiency and effectiveness, but adds time factor in relation to both demand and production of the good.


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