How do you measure Lean's impact on your KPIs?

Some of the KPIs for a Manufacturing company are: 1. Plan Vs. Actuals - monthly Plan vs actual production 2. On Time Delivery - are we meeting the delivery requirements of the customers 3. Rejection & Rework % 4. Overall Equipment Effectiveness of the critical machines 5. Manpower Utilization Rate etc. 5.

1) No of processes which is standardized 2) No of non value activities which are reduced 3) No of kaizen done by operators 4) Frequency of GEMBA visits 5) Involvement of CFT

Measuring Lean's impact on KPIs typically involves the following steps: 1. Define Clear KPIs: First, establish specific KPIs that are relevant to your organization's goals. 2. Baseline Data: Collect baseline data for these KPIs before implementing Lean practices. 3. Implement Lean Practices: Introduce Lean principles and techniques, such as VSM, 5S, CI &3M etc 4. Monitor Progress: Continuously track and monitor the KPIs 5. Analyze Results: Compare post-implementation KPI data with the baseline to determine changes and improvements. 6. Continuous Improvement: Apply the PDCA cycle to make adjustments and further optimize processes based on the KPIs. By consistently following these steps, you can assess Lean's impact on your KPIs

I would like to add my points 1. VSM- To analyse and address KPI like production cost/mt, manpower dependency 2. Kaizen- A Small improvement addresses a repeated product/production waste 3.OEE- To Monitor and Increase the efficiency of individual section KPI or Critical equipments 4.SMED- To avoid Production loss and meet customer requirements by reducing changeover time 5. Time-Motion Study- To analyse waste and improve the process which impacts on KPI and 5S, Line Balancing, Standardization etc.,

To measure Lean's impact on KPIs: 1. Choose relevant KPIs. 2. Establish baseline measurements. 3. Implement Lean practices. 4. Regularly collect data. 5. Compare post-implementation to baseline. 6. Analyze financial and non-financial impact. 7. Continuously monitor and adjust. 8. Share results with stakeholders.

Before diving into data collection for KPIs, Lean practices consider implementing temporary containments to protect the customer from target deviations. Assuming that you've already broken down the problem, found the root cause, and prioritized countermeasures, then use KPIs to validate these efforts by asking, 'How much of the gap have we closed?' and using daily meetings to ensure KPIs are consistently monitored, leading to further actions like process standardization or focused efforts to close performance gaps. Lean is not a one-time event but a continual process, including reflection, and knowledge sharing.

When measuring the impact of Lean through KPIs, benchmarks are crucial. However, one shouldn't limit themselves to the industry-specific parameters. From the outset, it's important to frame the issue as a gap needing closure, with the desired future state setting the pace for improvement. Guided by interim milestones, each improvement cycle provides new learnings, keeping the long-term objective in sight but understanding that improvement is incremental. Daily meetings serve again as a forum where KPIs are monitored, and if stable, then standardized to set the following gap to be closed, write lessons learned and share.

I have seen people or organizations do a kaizen event and think that is an improvement. In fact the kaizen event is just the beginning of continous improvement. Sustainable changes need to be made and monitored to ensure the effects of the changes have not been lost. Auditing the changes and verification will show in the KPI's. If you have the KPI's at the cell you can see real time changes. If you wait for a end of the month follow up, your data us a lagging indicator.

Absolutely, creating standardized work provides a strong foundation for continuous improvement. By having a well-defined standard, analyzing deviations becomes easier, and areas for improvement can be more readily identified. This enables the scientific method to be applied more effectively when proposing adjustments or enhancements to the process. Although 5S may or may not be a part of this standardization effort, the overarching concept of Kaizen serves as the guiding thread that facilitates this systematic approach to continuous improvement.

Yokoten is an effective Lean practice for sharing knowledge and successes across the organization. This approach goes beyond merely celebrating achievements; it ensures that key learnings are implemented in multiple areas of the business for broader impact. Through Yokoten, best practices and solutions are scaled, fostering a culture of continuous improvement and learning. This method becomes particularly powerful when integrated into regular meetings and recognition systems, as it reinforces team commitment and highlights achieved KPIs.

I would add the importance of building a lean culture. In wine industry where my expertise is in particular, to build a lean culture one should prioritize continuous improvement by involving all employees in identifying and eliminating waste, from grape harvesting to bottling. Encourage a mindset of efficiency, data-driven decision-making, and teamwork to enhance quality and reduce production costs, ultimately ensuring the sustainability and success of the winery.

Lean KPI can be set up depending on the product ,process and customer requirements. As we need to measure the cultural aspect of lean with improvement in KPI, we can measure as below, 1. No. Of Kaizen implemented / month 2.No. of suggestion Generated/month 3.Lean assessment score 4.5S score for the plant 5.No. of A3/ problem solving cases done. 4. Cost saving per month 5.No. of Kaizen event Conducted 6.Productivity /OEE 7. No. Of process Optimize for operation and non operation area. 8. Effectiveness of Process 9.No. of GEMBA walk conducted 10. No. Of Observations or improvement opportunity identify during GEmBA Walk 12Manufacuting Lead time. 13. Plan vs actual Layer audits

Specific examples of how Lean can impact KPIs: Lead time:?Lean initiatives can help to reduce lead time by eliminating waste and streamlining processes. Quality:?Lean initiatives can help to improve quality by reducing defects and preventing errors. Cost:?Lean initiatives can help to reduce costs by eliminating waste and improving efficiency. Customer satisfaction:?Lean initiatives can help to improve customer satisfaction by delivering products or services on time, at cost, and with the required quality. Employee engagement:?Lean initiatives can help to improve employee engagement by creating a more efficient and productive work environment.

A straightforward approach is to compare KPIs before and after implementing lean methods. Focus on key metrics and check for any declines in those metrics as an indicator of lean's impact.

Focusing just on quick-fix improvement projects might give you a boost, but those gains won't stick around for long. On the flip side, if you're only tracking performance through your KPIs, without integrating an improvement management system, you're going to move resembling a sawtooth pattern. The sweet spot? Combine both. Keep in mind, though, they're different beasts. Mixing them up could have you thinking you're making headway when you're actually just spinning your wheels.