Let's look now then at a box score example, lead. Alex is a manufacturer of luxury branded goods. and the value stream team there is reviewing performance over the last 10 weeks. Looking at the data on the screen, the box score that's been presented for this 10 weeks. What do you think the issues are? and pause the video for five minutes to examine this box score over these 10 weeks and identify some issues.

Okay. Right. Welcome back. I'm assuming that you've taken some time there to look at the box score and identify some issues. And the first issue for me if I was looking at this was be the flow time minutes the first performance indicator there and its impact on productive capacity. We see that over the 10 weeks flow time has reduced quite significantly from 127 minutes in week one, down to around 92 minutes in week 10 And this has had an impact on productive capacity.

Because we're able to flow more quickly through the value stream, the productive capacity of the process has also improved. Now it does vary across the weeks as you would expect as different issues impact on the value stream. But essentially, we have improved from around 43% to 46 48%. At the end of the time, though, it's achieved better during the period as well, which is interesting. The second issue for me to look at is infantry days, finished goods work in progress and raw materials, inventory days in finished goods and work in progress in particular has reduced and we imagine that this is because the flow time has also reduced, meaning that less inventory is required within the process, and less inventory is held at the end of the process. So finished goods inventory has dropped from 80 days, down to around 65 days at the end.

To the 10 weeks, whereas working progress inventory has dropped from 19 days to 12 days. However, if we look at raw materials inventory, we see no such reduction. In fact, it has fluctuated moderately wildly that we've seen peaks at 90 days and week three, and 89 days in week eight. So there's been no benefit to raw materials inventory from the reduction in flow time. And we wonder why that is certainly something we would want to look into. A third issue to look at would be rework which of course is a proxy for quality.

We see in weeks one to 43 items, 39 items being reworked. But as we get towards the end of the 10 weeks, that's reduced by half by more than half to sort of 20 items and week 917 items in week 10. And hopefully this is a sign that we're improving the quality of the process as well as reducing the flow time, but the fourth item on my list comes in at this time, which is the value of waitlist orders, we see that we started with nothing weeks one to Week Six, we have zero items on our wait list, but then we have 750 pounds worth down to 250 pounds worth. So perhaps the improvements in flow time have damaged the availability of some of our products for customers and this has resulted in waitlist certainly is something we would want to look into. Fifth, let's look at non productive capacity, which has reduced slightly over the time period though it has fluctuated and this perhaps is because the improvement to the flow time improvement to quality has meant that less time is lost to downtime to rework etc.

And therefore the non productive capacity is reducing, but available capacity hasn't really shifted that much. Rather productive capacity has increased In line with the drop in non productive capacity. And finally, let's look at the sales value across the time period. The improvements in flow, and the improvements in quality haven't yet really been reflected in the financial data. financial data can be hard to interpret because on a week to week basis, there's going to be timing differences in terms of sales and costs. So the weekly numbers don't necessarily reflect the operational performance of that week or even of the previous week.

In this example, we see that value stream contribution is fluctuating between about 23%. They're in week nine, and well actually 37% in week two, which is surprising, but as I say, it's probably timing differences. And the material usage percentage compared to sales is fairly steady at between sort of 30 and 35%. So overall examination of this company's book score have shown some issues that we want to examine further and look into the root cause of and some issues that we need some further data to see really what's happening. And that of course, is the purpose of the box course to keep us highlighting the issues that we need to look into further or to continue to examine. And don't know next couple of slides there are repeat what I've just said, to give you a written text of it.

So end to end flow time, finished goods and work in progress inventory, scrap levels, and then on next page, the rise in the wait list, the productive capacity issues and financial results issues. I'm not going to read these again, pause the video and have a look at them if you want to look at them further.