What is the key to economic outcomes in a flow system?

• A. Capacity planning
• B. Quality assurance
• C. Job sequencing
• D. Resource allocation

Answer: (C)

In a flow system, the order in which work items are processed—the sequencing—drives the economics of delivering value. When items flow through the system, the sequence determines which work moves first, which waits, and how much work-in-progress accumulates. Good sequencing reduces bottlenecks, cuts lead times, and increases throughput, so high-value items are delivered sooner and with less delay. This directly affects economic outcomes like faster ROI and quicker realization of value from the same capacity.

Capacity planning, while important, doesn’t by itself optimize how the work moves through the system; it’s the sequencing that actually shapes flow under constraints. Quality assurance ensures the delivered work is sound, but it doesn’t determine the order in which work is completed. Resource allocation matters for who does the work, but without intelligent sequencing, resources can be tied up on lower-priority items, slowing the overall flow.