A value stream map is a visual tool that shows the flow of materials and information from the customer to the supplier, highlighting the value-adding and non-value-adding activities. It helps you identify the sources of waste, variation, and inefficiency in your process. However, your value stream map may not reflect the changes in customer demand, process capability, or external factors that affect your process performance. Therefore, you should review your value stream map regularly and update it as needed to align it with the current state of your process.
Your lean metrics should support your strategic goals and objectives, as well as your customer needs and expectations. They should measure the outcomes and outputs that matter to your stakeholders, not just the inputs and activities that are easy to track. For example, if your goal is to reduce lead time, you should measure the time from order to delivery, not just the cycle time of each process step. You should also review your goals and metrics periodically and adjust them as necessary to reflect the changes in your environment, such as new customer segments, competitors, or regulations.
A balanced scorecard is a framework that helps you monitor and manage your performance across four perspectives: financial, customer, internal process, and learning and growth. It helps you balance your short-term and long-term goals, as well as your efficiency and effectiveness measures. By using a balanced scorecard, you can ensure that your lean metrics cover all the aspects of your value creation process, and that they are aligned with your vision and strategy. You can also use a balanced scorecard to communicate your progress and results to your stakeholders, and to identify the gaps and opportunities for improvement.
Your lean metrics are only as good as the data that supports them. If your data is inaccurate, incomplete, or inconsistent, your metrics will be misleading or unreliable. Therefore, you should validate your data quality regularly and ensure that you have clear and consistent definitions, standards, and methods for collecting, analyzing, and reporting your data. You should also verify that your data sources are reliable and up to date, and that you have adequate controls and checks to prevent or correct any errors or anomalies in your data.
Your lean metrics are not just numbers; they are signals that tell you how well you are performing and where you need to improve. However, your metrics are useless if you do not review them regularly and act on them accordingly. You should establish a feedback loop that involves collecting, analyzing, and interpreting your metrics, as well as communicating, implementing, and evaluating your improvement actions. You should also solicit and incorporate feedback from your customers, employees, and other stakeholders, as they may provide valuable insights and suggestions for improving your process and metrics.
I shall verify how our metrics are aligned with the company KPIs. As the KPIs breakdown in most companies follows the sequence: Strategic KPI -> Tactical KPI -> Operational KPI, we need to make sure that our metrics are contributing with the company expectations. With this in mind, will be much easier to obtain help from our sponsor and convince the team to achieve the goals defined in our metrics.