
Make Value Flow Without Interruptions — And Predictable
There are two key and critical things that are needed to measure our predictability in a probabilistic way -- the probability of us meeting our promises (i.e. not in a deterministic way). Our predictability is very important to our customers who are waiting for their “valuable things” to be delivered by us. These two key and critical things are: 1) the ratio of Actual versus Planned — which is also known as Achievement Ratio (AR). To be predictable, the AR must consistently be between 0.80 and 1.00 (in percentage, which is 80% and 100%). Otherwise, your process or system is unpredictable. Formula: AR…