MBACC4
VALUE DELIVERY
Every successful business actually delivers
what it promises to its customers.
There’s a term for a person who takes other
people’s money without delivering equivalent value:
"scam artist."
Throughput
“However beautiful the strategy, you should occasionally look at the results.” — Winston Churchill, prime minister of Great Britain during World War II
Key Ideas:
- Throughput is the rate at which a system achieves its desired goal. It’s the measure of effectiveness of your Value Stream.
- It’s measured in the form of rate/time: the higher the rate and the lower the time, the higher the throughput.
- To measure it you need clearly defined objectives:
- Dollar Throughput is a measure of how quickly your business creates a dollar of profit.
- Unit Throughput is a measure of how much time it takes to create an extra unit to sale.
- Satisfaction Throughput is a measure of how much time it takes to create a happy customer.
- By improving the process you create and deliver value, you will improve quality and customer satisfaction.
Questions for Consideration:
- Based on what you’re offering, what is your current dollar / unit / satisfaction throughput?
- What appears to be slowing down your value delivery system?