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, its 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: