Process Efficiency - Adapting Flow to the Agile Improvement Effort

Abstract

In Scrum, we measure performance using velocity. However, the velocity of one team cannot be compared to the velocity of another, since it is a relative measure that is only of meaning to the team using it. So can we objectively measure the performance of teams? Measuring Value Added Time as a percentage of Total Time is a metric that is used in Lean Manufacturing to help get a better understanding of production processes and optimize those processes. This paper introduces an adaptation of this metric to the Agile environment. Giving teams an objective insight into their efficiency helps them optimize their efficiency and compare themselves to other teams. This adapted metric is called Process Efficiency and is comparable across teams, technologies, and domains of practice.