ABSTRACT

This chapter describes what to measure, how to calculate the measures and how to develop an integrated set of lean performance measurements for a lean company. Lean companies strive to be make-to-order, which means producing to specific customer demand. Schedule attainment is simply a discrete measure to determine if a cell produced to plan. Measuring quality on a daily basis is necessary because lean companies strive to prevent defects from being passed on to customers, which can be the company’s customers or downstream processes from cells. Lean companies consider their employees to be their most important asset and they strive to achieve a safe work environment. The goal of measuring safety is that safety awareness becomes part of everyone’s everyday work. Productivity and lead time can be considered corollary performance measurements because measuring both helps move each of them in the right direction.