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Topic Title: Department KPIs
Topic Summary: Establish quality metrics for a LEAN department
Created On: 07/20/2017 02:10 PM
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07/20/2017 02:19 PM
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StephanKoep
Stephan Koep



Hi everyone,
We are a pretty new department of LEAN Practitioners and Industrial Engineers. Now it is time to evaluate the quality of our work and whether we really add value to the organization. I am curious to learn what metrics/KPIs your LEAN teams have established to measure your success.

Thanks for any advise - Stephan
07/21/2017 10:25 AM
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Robert_Simonis
Robert Simonis



What is your a d your company's definition of Lean? If lean is seen as a cost savings program, then measure savings. If lean is about tools, then measure implementation and use of tools. If lean is about manufacturing efficiency, measure lead time. If lean is about human development, then measure number of people trained. If it is about problem solving, measure the speed a suggestion or idea is implemented (suggestion box to implemented lead time), or number of kaizen completed. If lean is about employee engagement, get a really good employee 360 ┬░survey that gives you both qualitative and quantitative data. If lean is about culture, mindset, and leadership, then I suggest something like the Shingo assessment.
07/21/2017 10:25 AM
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peterhilton
peter hilton



Keeping it simple I'd advise you to focus on overall cost and overall productivity across the areas that you have accountability for.

That will cover direct and indirect work and also encourage you to consider other resource costs that you may not have considered.

Drill down as well so that you can measure the success of particular projects in case the high level kpis are influenced by things that are beyond your control.

You have to put the business first in my opinion.

Cheers
07/21/2017 10:25 AM
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bmackeyvt
Brian Mackey



Hi Stephan,

Having been part of standing up a few Lean teams, I found that the best measure of success / impact was our impact on the existing metrics. I am in healthcare, so I want to measure our impact on things like mortality, cost per case, length of stay and patient satisfaction.

You could also include things such as # of people trained, # of Lean activities (kaizen, A3s, etc.) complete or in progress.

But in order to justify the allocation of resources to your department, it's important to show your impact on your organization's KPIs.

Hope this helps,
Brian
07/24/2017 10:49 AM
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QAadmin
Sheryl Morin



Hi
Some of the basic KPI's that we use are actual sales to budgeted sale dollars, inventory turns, number of customer complaints, number of repeat reason for complaints, throughput efficiency, machine set up times, quote turn around time, on time delivery to the customer.
07/24/2017 10:49 AM
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StephanKoep
Stephan Koep



Thank you all for your valuable input. I will get into all of your suggestions. I agree that we need to establish metrics showing the impact to the business. In our team we very much focus on problem solving, continuous improvement and establishing a LEAN Thinking culture. Robert - I will get into some of your suggestions and have a look on how to implement some of them.
You all helped me a lot,
Stephan
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