How do you measure and improve the efficiency of kanban vs lean teams?

1 Kanban vs lean: what are the differences?

Kanban and lean both originated from the Toyota Production System, a set of principles and practices that focused on eliminating waste and maximizing customer satisfaction. However, they have different approaches and applications. Kanban is a visual system that uses cards, columns, and limits to manage the flow of work. It does not prescribe a fixed process or roles, but rather adapts to the existing one and encourages continuous improvement. Lean is a philosophy that emphasizes value creation and waste reduction. It involves identifying and eliminating any activities or resources that do not add value to the customer or the product. Lean also promotes a culture of learning and experimentation, using tools such as value stream mapping and the PDCA cycle.

2 How to measure kanban efficiency

One of the key benefits of kanban is that it provides a clear and transparent view of the work in progress, the bottlenecks, and the throughput. To measure the efficiency of your kanban team, you can use metrics such as lead time, cycle time, work in progress, throughput, and flow efficiency. Lead time is the time it takes for a work item to go from request to delivery. Cycle time is the time it takes for a work item to go from start to finish. Work in progress is the number of work items in each stage of the process. Throughput is the number of work items completed in a given period. Flow efficiency is the ratio of value-added time to total time. These metrics can help you monitor and optimize the flow of work, identify and resolve issues, and improve customer satisfaction.

3 How to measure lean efficiency

Lean efficiency is not only about speed and quantity, but also about quality and value. To measure the efficiency of your lean team, you can use metrics such as customer satisfaction, defect rate, value stream efficiency, and return on investment. Customer satisfaction is the degree to which your product meets or exceeds the expectations and needs of your customers. Defect rate is the percentage of work items that have errors or require rework. Value stream efficiency is the ratio of value-added time to total time across the entire value stream. Return on investment is the ratio of profit to cost for your product. These metrics can help you evaluate and improve the value proposition, the quality standard, and the financial performance of your product.

4 How to improve kanban efficiency

To maximize your kanban efficiency, you should limit your work in progress to avoid multitasking and overloading. Additionally, visualize your workflow and make it visible to all involved. Implement a pull system that prioritizes work based on customer demand and value. Furthermore, review and adjust your work policies and limits regularly to reflect changes and feedback. Finally, conduct regular retrospectives and experiments to learn and improve.

5 How to improve lean efficiency

To improve your lean efficiency, you can define your value proposition and customer segments with data, map your value stream to identify and remove any waste or non-value-added activities, implement the PDCA cycle to test your assumptions, measure results, and make adjustments, empower your team to make decisions and solve problems based on data and customer feedback, and foster a culture of continuous learning and improvement.

6 How to choose between kanban and lean

When it comes to selecting the best methodology for your team and project, there is no one-size-fits-all answer. Consider the nature and scope of your work, the level of uncertainty and risk involved, the flexibility and adaptability required, and the level of collaboration and communication needed. You may also opt for a hybrid approach that combines elements of both methodologies, such as using kanban boards to visualize your lean value stream or using lean tools to optimize your kanban workflow. Ultimately, the decision will depend on your goals, context, constraints, and preferences.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?