Speaker 1: We have a situation like this 1,000 flow units per month come in, 1,000 go out, 200 of them accepted, 800 rejected. Average number of flow units inside the process is 500. Suppose all of this is done by one or two or three experts, correct? They know everything, all of it in one sub-process. Throughput times flow time is equal to inventory. Therefore, 1,000 times flow time is equal to 500 and T is equal to 0.5 month. Or if I multiply it by 30 if a month is 30 days, it will be 15 days. Usually, when we have a process, if one person alone sits over there and manufacture a whole car, this car will be very expensive because the person should know everything. A person who knows everything is an expensive person. If I can cut the job in smaller pieces, and I can give each piece to a person who deserved that piece. If a piece is simple, I will give it a person who can do simple jobs. Because he does simple job, the cost is low. If work is complicated, I can give that job person who is capable of doing it, and of course, I should pay more. Indeed, the most significant way of reducing the time of doing some job and reducing the cost of completing it is to cut it and then try to give it to the person or a resource at the same level. The key is to match these two together, the capability of the resource and the requirements of the job. This is a very important key. Because if the capability of the person is higher than what the job needs, we need to pay more to that person, and therefore, the cost will go up. If the capability is less than the quality that the job needs, we pay less, but at the same time, the quality will go down. Therefore, the key is if I can cut the job into small pieces and give each piece to a resource which really matches that requirement, even if I give a job to a person who has a higher quality, not only I pay more, but maybe also the quality of the job goes down because the person thinks that he deserves to do better. Now they have cut the process into three pieces. Instead of doing all of them in one process, now they have an initial process. For example, a secretary who can easily find it out that 50% of these applications can be easily rejected. He may be able to create two other piles. One pile, those who have higher potential for acceptance, and one pile, those who have higher potential for rejection. Then maybe we have a pessimistic person here and he goes through these things and reject 30% of them, 70% accepted, 30% rejected. We may have a optimistic person over there who goes through the rejected pile and select 10% of them while he reject the remaining 90%. 1,000 applications, which in general, we call them 1,000 flow units come into this system. Human and capital resources in the first stage will work on these applications. Based on the policies, regulations, and role we have, people who are here find it out that 50% of these thousand applications per month should be rejected. Then out of the other 50%, they create two new piles. One pile has high potential of rejection, one pile has high potential of acceptance. Out of 100%, which comes in, 50% immediately gets rejected, 25% goes to Process B, 25% goes to Process A, 25% of 1,000 is 250. The same is here, those are 250. The water of a river comes in, 50% goes this direction, 25% goes in this direction and 25% goes this direction. There are three dams in front of the first flow, which is the major flow, there is a dam and usually there are 200 flow units reserved in that reservoir. In the second process, on average, there are 150 flow units weighting. In this subprocess, on average, 25 flow units are weighting. Out of this 25% which goes over there, 70% of 25% is accepted, 30% is rejected. Out of this 25% which goes over there, 10% gets accepted, 90% gets rejected.