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The resource utilization trap - YouTube
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hello here's a problem that a lot of
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companies have I call it the resource
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utilization trap so I'm going to
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demonstrate this using a ping-pong ball
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and a bunch of friends over here all
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right
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so here's how it works this represents a
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feature or a customer request and this
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is a team and for them to build a
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feature
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everybody has to touch the ball actually
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has to pass through all your hands all
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right that clear and then when you're
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done you just put it here
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that's customer delivery right so we're
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going to demonstrate this go look at
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them work awesome Wow customer delivery
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cool right let's do another one go
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amazing amazing team cool and here's
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another one look at that awesome okay
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here we go again pause all right now
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suppose the manager walks in it's 10:15
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the manager walks in was the door and he
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looks in and he sees that okay and then
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he walks out again okay and we keep
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going play alright next thing pause now
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the manager comes in again later on that
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afternoon and he happens to see this and
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he starts to wonder what are these guys
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doing there's three idle and one working
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right what a waste of resources so we
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need to solve this problem and they were
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going to solve it is by hiring a
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supervisor and his job is to make sure
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that we keep people busy so we get value
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for our money all right
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so same routine as before you have to
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touch every ball with both hands for it
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to be done right this time I'm just
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going to keep people busy ready go right
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you're going for you up here's a hand
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that's available available resources
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there right here's one Oh gotta keep
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people busy cool that's great right
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here's another one but I see a hand
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there okay pause cool now what happens
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when the manager comes in what does he
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see
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problem solves look everybody's working
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really hard it's great we're getting
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value for the salaries were paying right
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it's perfect except for one problem the
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customer is like where is my stuff right
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so what just happened in the first
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scenario we had about maybe 10 to 15%
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resource utilization right only one hand
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was at work out of the 8 something like
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that and the flow time was somewhere in
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the order of about maybe 5 seconds as in
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how long it time it took to actually
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deliverable right second scenario we had
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resource utilization 100 percent maybe
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even more right and our flow time was
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well infinite we never actually got
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anything done so here we have happy
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customers getting stuff delivered you
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have angry customer getting nothing
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delivered so what does this mean we
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should just ignore resource utilization
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and only focus on this well not really
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um it is actually ok to tweak resource
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utilization but after we've established
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our optimum flow so we're going to look
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at that and a really good technique for
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doing that is called pull so let's have
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a look at pull so here is what we had
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before right first scenario one ball
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being passed through right this is push
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because I'm pushing in stuff right I'm
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pushing in another one there's push
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pushing it in so pull means turning that
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around and saying instead of me pushing
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working I'm offering work to be pulled
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which means that they can pull stuff
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whenever they feel they have capacity
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they choose how fast they pull stuff in
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right so watch what's going on now keep
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going and I'm going to press pause right
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so if we look at this now what actually
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happened all right so what's the
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difference well more stuff delivered in
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the same amount of time without
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sacrificing flow so let's go back to the
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board if we add another column here
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throughput
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some would call that velocity we have
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about 12 or so balls per minute right 12
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or so balls per minute in the second
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round well we didn't get anything
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delivered so to zero in the third round
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what actually happened was we had about
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the same flow through time we didn't
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sacrifice any flow time but we improved
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utilization we got it to maybe about
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double right well maybe 30% and our
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actual throughput would be maybe 24 so
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balls per minute right so this is what
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happened we optimized flow first and
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then we optimize resource utilization
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without sacrificing flow that's the kind
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of lean approach so in summary a lot of
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organizations get stuck because they
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focus way too much on resource
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utilization keeping people busy and if
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you focus on keeping people busy what
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you get is a bunch of busy people the
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lean approach is focus on flow primarily
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and then resource utilization secondary
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and one way to do that is through both
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100% resource utilization equals zero
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percent flow so think about that next
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time you're stuck in a traffic jam
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because the road system is 100 percent
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utilized okay thanks for watching this
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video hope it was interesting and we got
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a bunch of other similar cool videos on
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our YouTube channel and you can also
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check out our stuff on the blog thanks
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have a nice day bye bye
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