Lean Performance Measurement
1 day (workshop) / Implementation depends on size of your
company
Many consultants and organizations have tried their hand at
implementing Lean, but find it difficult to measure their
success. The problem is we try to maintain the measurables that
were put in place prior to lean transformation. Since it is
believed that measurements drive action, we need to measure the
things we want to change. In a traditional "push" plant we
measured output and efficiency by department and machine. The
goal was to keep people and machines busy and these types of
measures made that the focus. In retrospect, it is not
surprising that we built up piles of inventory between
departments, and extended our total production lead-time, (i.e.,
the time from first operation to last operation).
In a Lean plant we want value to flow. We want lead-times to
be as short as possible. How can we drive that change? By
measuring lead-times and showing the results to those who can
make it happen. Similarly if changeover times need to be
reduced, measure them and feedback the results on a team
information board. We need to select measurables that drive
behavioral change. Changing organizational culture is a key
approach to overcoming barriers to performance improvement. But
how do you change culture? One key element is performance
measurements. "What gets measured gets done!" And if we want to
get Lean, we need to use performance measures that promote Lean
behavior.
Measurement motivates. When we provide feedback for a
particular performance measure, we send a message: "This is
important! This needs attention!" At the same time, we indicate
how well were doing, (i.e., whether we're winning or losing).
Most employees want to do well. If we tell them what "good" is,
they will work to achieve it.
Course Description:
The alignment of performance measurements from the top of the
company through to the shop floor is essential for successful
lean conversion. In this workshop we will present a series of
standard, tried-and-tested performance measurements that are
used in lean production environments. As anything in life goes,
you can't improve what you can't measure. Participants will be
provided with the framework and methods for developing and
aligning performance measures and reward systems.
Learning Objectives:
Participants will learn:
• What to measure;
• How to measure it; and
• How to react to the output.
Who Should Attend:
Accounting department, executives, supervisors, quality
department, and the continuous improvement expert within the
company.
Prerequisites:
- Lean Conversion Overview
- Value Stream Mapping
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