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Today, many organisations are unnecessarily inefficient. It is not uncommon for real efficiency to be well below 50% against the near 80 possible, despite extra holidays and generous training.

In service production, it is the working hour - properly used - that constitutes the value creation. There may be different views on value creation, but the clearest definition is a result that is directly billable or time spent that can be recorded as an asset (investment) in an accounting system. The calculation of value hours is based on the fact that an hour must be within budget to be counted. A major source of inefficiency is a lack of resource planning that is known by employees on their own and on a daily basis and a lack of using working time in planned amounts for various purposes when it is available. This is easily revealed by comparing the planning of a reprocessing pace with actual time recorded. Simply having resource allocation planning that is also realised and reported will provide a very large improvement in profitability compared to not having this type of planning.