Local Efficiency
An operations management concept referring to the per-unit output rate of a single stage, as opposed to global efficiency, emphasizing that speeding up one stage does not necessarily increase overall throughput.
Timeline (last 90 days)
Local efficiency refers to the output rate of a single stage or individual, while global efficiency refers to the throughput capacity of the entire value stream from demand to delivery.
In complex systems, maximizing local efficiency at every stage often backfires: upstream accelerates output while downstream cannot absorb it in sync, leading to queueing, backlog, and rework, and global efficiency actually declines.
Speeding up a non-bottleneck step from 20 minutes to 3 minutes leaves the overall cycle time almost unchanged as long as the bottleneck remains at review or handoff, and it may simultaneously pile up a larger queue downstream because output at the generation end surges.
All Facts (3)
Local efficiency refers to the output rate of a single stage or individual, while global efficiency refers to the throughput capacity of the entire value stream from demand to delivery.
50%UnverifiedIn complex systems, maximizing local efficiency at every stage often backfires: upstream accelerates output while downstream cannot absorb it in sync, leading to queueing, backlog, and rework, and global efficiency actually declines.
50%UnverifiedSpeeding up a non-bottleneck step from 20 minutes to 3 minutes leaves the overall cycle time almost unchanged as long as the bottleneck remains at review or handoff, and it may simultaneously pile up a larger queue downstream because output at the generation end surges.
50%