ABSTRACT
All stakeholders have to want to improve the flow efficiency of the entire value stream and not just their own piece of it. 100% flow efficiency is the theoretical point of maximum flow efficiency, when the touch time and lead time are the same and the unit of work is never idle. The distribution of work within and between teams is always uneven, but pursuing flow will nonetheless always enable the work to be completed faster than if it is done through random multitasking. In technical terms, Carlos is hoping the flow efficiency of the reimbursement process improves from its current state of 5% to 8%. Flow efficiency is calculated slightly differently than process cycle efficiency (PCE) because the former includes the non-value-added activities within the processes themselves, so flow efficiency will generally be higher than PCE for the same task.
