Bryan Pflug's blog

Where does the money go?

Sources of waste include:

  1. Defects
    • Design errors
    • Rework
  2. Unnecessary Inventory
    • Work in Process
    • Underutilized capacity
    • Finished products that are not in use
  3. Unnecessary Complexity
    • Excessive reporting
    • More parts or steps than necessary
  4. Overproduction
    • Gold plating requirements
    • Obtaining parts, tools, or information before necessary
  5. Delays in processing
    • Downtime
    • Lengthy approvals
    • Poor response time
  6. Non-value-added operations
    • Processing Work In Process unnecessarily
    • Producing information that is not used
    • Duplicated operations
  7. Underutilized team members
    • Limited authority, means, or motivation to carry out improvements
    • Lost time, ideas, skills

Software as a service

After a 30 day free trial, an individual user's license to Liquid Planner runs $300 per year, or about one third of a LP allows the uncertainty full license. Liquid planner's development team is roughly 10 people. If we translate that into an annualized average cash flow of $1.5M per year, they would need to maintain an average of about 5,000 users to be both sustainably profitable and continue to evolve and support the tools' functionality over time.

Aligning vision, strategy, and tactics

image​The bravest are surely those who have the clearest vision of what is before them, glory and danger alike, and yet nothwithstanding, go out to meet it. - Thucydides

I have been involved in countless efforts throughout my career in which various organizations needed to accomplish some fundamental change in their direction, positioning, or purpose. Such changes are rarely quick, easy, or successful the first time they are attempted. The reasons for this are many and varied: understanding the details of such changes is itself an incremental discovery process; the underlying organizations often have one or more cultures that actively resist changes to varying degrees; inter-organizational dynamics are often complex and not sufficiently understood; and finally, because communications about the compelling drivers for such changes are often watered down by abstractions, hedges, and distrust. The net result is to increase anxiety and delay, rather than motivate and accelerate, those who must make the desired changes happen.

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