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08/23/2010 09:28 AM
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Hi, I am from manufacturing sector, recently we have intention to introduce Lean Office in our plant. But the first problem is we need to realize is : How & What are the KPI to measure the Lean Office efffectivenss ?
Note: Our Office consist of : HR, Account, IT, Procurement, Facility Maintenance & etc. )
Is there anyone can help ?
Thanks in advance
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08/23/2010 12:52 PM
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Keep in mind that departmental productivity measures (KPIs) that were developed when departments had their own performance objectives, and in particular, their own schedules, may not be considered appropriate if a company has implemented a Lean philosophy that is process driven and that stresses cross-functional (cross-department) cooperation and synchronization. If departments continue to measure against old performance objectives, they may seek improvements that would not be compatable with their Lean objectives. KPIs should be selected that support the objectives of their company's Lean program.
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08/30/2010 08:58 AM
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I agreed with Sam that the selection of KPIs must be done with great care as they will drive future behaviour and where they are not consistent with the organisations direction or create silos then they wil undermine the lean direction.
Why not use the first principle of the TPS that the customer comes first and develop your KPIs with your customers and so break down barriers rather than erect them.
Regards,
John
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08/01/2011 10:33 AM
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VOC is important, but not to the point that it impacts profitability.
The two must be balanced.
Ultimately, a customer wants something for nothing, and a vendor wants money for doing nothing.
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08/19/2011 06:24 PM
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Hi,
I agreed with you. Any way, your points of view make me thinking about some thing for my project.
Pls try to keep posting. Tks and best regards
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08/30/2011 10:30 AM
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Hi Tan S,
Recently I designed and developed a pilot energy efficiency course for the New South Wales (NSW) Department of Education and Training here in Australia for Vocational Education Trainers based on the Australian Manufacturing Quality Education Framework that was highly focused on the application of Lean Principles in achieving energy efficiency and conservation in the workplace. While it was based on the manufacturing sector, it is applicable to a broad range of industries, in fact one of the course participants was the Human Resources Manager for one regional NSW biscuit manufacturing operation who with the cooperation of the management of the company applied and implemented many of the skills and tools to achieve substantial reductions in their energy usage which considerably reduced their energy related overheads and hence their competitive edge. This was just one of many success stories associated with the activities of the course participants in their workplaces.
The learning materials for the course, " Competitive Manufacturing and Energy Efficiency across Industry" are freely available for the NSW Department. of Education and Training, State Training Services website at:
https://www.training.nsw.gov.au/clearhse/Preview.do?no=274&type=O
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08/30/2011 10:30 AM
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If you want to get more materials that related to this topic, you can visit: http://keyperformanceindicators.info/maintenance-kpis/
Best regards.
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09/19/2011 10:09 AM
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Hi Tan,
I don't think that offices are all that different to factories, they produce things for customers, the only difference is that they produce information not products.
So I guess it should be a simple case of just modifying what you already know and love to your new environment.
If it helps I wrote an article here: http://www.squawkpoint.com/2011/08/how-focused-are-you/ that discusses KPI's for the service industry.
Good Luck
James
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03/02/2012 01:52 PM
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Hi,
Thanks very much for this comment. It help me to think about my ideals.
Tks again and pls keep posting.
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03/09/2012 01:48 PM
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Hi
the kpis need to be related to the objectives of the process ie what you are trying to achieve for the customer. Use the first principle of lean to determine customer value and then translate these into meaningful process measures. So for example Finace measures might be % RFT supplier payment, days to pay a supplier as output measures and PO accuracy as an input enabling measure.
Neil
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03/19/2012 09:52 AM
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Hi,
I believe these shouls be the processes that are worked efficiency, ensuring that you can Identify, Visulaise and Remove waste from the process while ensuring you deliver the customer requirements.
Therefore:
How effective is the process at meeting the customer requirements first time, i.e. quality
How long does it take you to deliver a unit of work i.e delivery
&
potentially, what things are getting in the way of the employees producing, i.e lost time or increased cost
Once you have your measures visualise these outputs in the work area, but be casreful I have seen many bad examples of viaual management and the performance boards turning into baseball bats for staff beatings. I have written a post that should help you with seeing how effective your visual managemnt is
http://leansecrets.co.uk/how-e...our-visual-management/
I hope this helps
Cheers
Lee
www.leansecrets.co.uk
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03/23/2012 01:20 PM
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That's why I always recommend that organizations work "in the long-term best interests of their customers (and other stakeholders.)" The "long-term" requirement means that, as long as you are providing value, it is in the best interests of your customers that you stay in business.
However, I NEVER recommend that any organization sacrifice providing good value to the customer in order to achieve (more) profits -- that's at best a short-term strategy that leads to disaster very quickly (unless you have a monopoly in your market -- and even then this strategy eventually comes back to bite you.) That's why Lean is such a good thing: it enables organizations to improve value to the customer while, at the same time, improving profitability.
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03/23/2012 01:20 PM
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I agree with everyone else who cautions you about how you choose the KPI's. But I also understand that sometimes, when starting a new venture, one must begin with some baby steps. So, keeping in mind the cautions, here are some possibilities to consider:
Total work lead time (VA plus NVA) compared with Takt time
Total work cycle time (VA only)
Internal errors (perhaps on the Defective Work Per Million metric)
Percent of Project Milestones reached on schedule
Backlog (numbers; time)
Queue (or Waiting) time [time that WIP spends waiting to be worked on]
On-time delivery - measured according to customer expectations/needs
Should you do all these? only these? Of course not necessarily. But it's a starting point.
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