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Improvements
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In virtually any value adding process, throughput time can dramatically be improve since 95 to 99,5% of the time is non-value adding..
Lots of transfer points (one desk to the other) can be eliminated.
Historically grown processes can become transparent, fast and more stabile by taking out the identified losses.
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Issue
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Improvement
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Throughput time
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50% - 90% faster
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Transfers
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90% less
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Output errors
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90% - 100% less
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Value added time
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If the time stays the same, quality of output goes drastically up. For the same output, the VA time sometimes can go down 25% or more.
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Opportunity
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The time that has become available can be reinvested in the addition of extra value - things we would like to do, but did not find the time for - or it can be used for new loss-reduction activities.
In this way the negative spiral of 'starvation due to cost-cutting' can be turned around in 'profit growth due to becoming better and better' -in other words real continuous improvement.
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