Flow metrics: Difference between revisions

Flow metrics (view source)

309 bytes added , 11 February

→‎Throughput: clarify derived values

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 * Average revenue, trailing four quarters.
-These all measure the same, but we don't get invoices paid daily. Effectiveness and Reliability go up and down each day in semi-predictable amounts because they mostly directly result from the work you're doing and not doing as a team. Revenue requires work by third parties (customers and banks) and is much more lump-sum. We track revenue per quarter and average trailing four quarters as those graphs smooth the numbers to such an extent that visual analysis is much easier.
+In essence, these all measure the same thing; in theory, only the daily revenue matters. As we are a smaller company, though, we don't send hundreds of invoices per year or get invoices paid to us every working day. For example, we could get 1.000 on Monday, nothing on Tuesday, and 3.000 on Wednesday. That doesn't necessarily imply that Monday was a good day, Wednesday was a great day, and that we failed in our work on Tuesday.
+Effectiveness and Reliability go up and down each day in semi-predictable amounts because they mostly directly result from the work you're doing and not doing as a team. But Throughput can be very "spiky". That makes graphs harder to read and interpret. We use the revenue per quarter and average four quarters trailing revenue to smooth out the graphs.
 =A sidenote on quality=