My Take: Metrics that Matter

Supply Chain Shaman

Joe works for Filipe, and his boss believes that supply chain excellence can best be typified by lean. While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. Achieving Balance in Metrics. Last week, I held my new book in my hand.

Modern Metrics

synchrono

In the same way that marketing is leaning more on technology for decision-making data – and what to take action on to improve performance – more manufacturers are investing in technology to better serve their clients, elevate their competitive position and increase revenue. Combat data overload by knowing what you want to achieve and focusing on metrics that align with those goals. White Paper: Demand-Driven Manufacturing Metrics that Drive Action.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Lean Logistics

LeanCor

Why is PDCA Important in Lean Logistics? In lean logistics (or any field), PDCA (Plan, Do, Check, Act) allows individuals and teams to thoughtfully review an operation for problems or opportunities, and experiment with ways to improve the situation. Most companies typically use metrics such as cost, quality, and delivery to track progress and assess improvements. If PDCA is in place, problems will be solved before they escalate or show up in output metrics.

Lean 179

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

Today I will discuss how a company can sustain a lean culture once they have implemented lean practices in order to achieve continuous improvement. Your company has started the lean journey, but how do you sustain it? Let's first talk about first setting the stage, then give you practical practices and tactics to achieve a sustainable lean culture, and then provide core key performance indicators (KPIs) to track your progress. Lean Culture by Creating "Standard Work".

Lean 182

Lean Transportation: Are you Using Lean Thinking for Transportation Management? If not, Why?

Cerasis

Lean is a new way of doing business. For shippers, culture and behavior have to change to apply Lean Transportation thinking. Lean thinking focuses on the elimination of all waste (where waste is defined as any non-value added process) and bringing value to the customer , beyond the customer’s expectations. The “Them (company leadership) versus Us (shop floor associates)” mentality also needs to change for Lean Transportation to " WE.

Lean 179

Metrics that Matter: Inventory Effectiveness

QAD

It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Using Metrics to Measure the Health of the Business. Companies use these metrics to minimize their investment in inventory without adversely affecting customer service levels. The absolute measure is less informative than the trend in the metrics. Use lean manufacturing and Just in Time to reduce inventory.

9 Steps to Establish the Lean Supply Chain: A System of Interconnected & Interdependent Partners

Cerasis

Top management knows that lean can add value , but many still haven’t moved past the initial education stage into full-scale lean supply chain implementation. One reason may be that they haven’t made the paradigm shift as to how to implement lean. The Lean Supply Chain is a system of interconnected and interdependent partners that operate in unison to accomplish supply chain objectives. These metrics should be reviewed frequently to ensure supply chain success.

Lean 263

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Customer Service Levels : When it comes to how a shipper defines the value of a logistics provider or 3PL to the bottom line, there are often several Key Performance Indicators (KPIs) and Logistics Metrics taken into consideration.

Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

synchrono

When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain. This “lost opportunity metric” is now something that Lean manufacturing experts try to keep at the top of the list.

Aligning Metrics to Strategy

synchrono

When we began our metrics discussion, we talked about how behaviors are too often dictated by metrics—and whether or not these behaviors actually “move the needle” for sustainable supply chain improvements. Mark Davidson’s blog about aligning metrics to larger goals and objectives covers this topic well. And, we often find that when you have too many metrics, at some point they may even work against each other. See the Operations Metrics for Action Guide ).

10 Signs You Should Reboot Your Lean Program!

Supply Chain Game Changer

How many people make a New Year’s resolution to “Lean” yourself out only to abandon it shortly thereafter? What do you do when your Lean program at work suffers the same fate? From what I could see in most facilities there was evidence that Lean was being practiced.

Lean 79

Three Ways Leaders Create Lean

synchrono

Three Ways Leaders Create Lean. Relentless” leadership and team empowerment drive lean change. For those of you who have not, this is important – leadership is the single most important component to lean success. . It is exciting to talk about bottom-up change and expect that a ground swell of individuals in virtually every level of the organizational chart can succeed with lean—in spite of those in the C-suite that just don’t get it.

Lean 55

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. Why do companies focus on reducing a specific metric? Some of the more likely are; A metric (like inventory performance) is monitored by financial analysts and therefore tied to stock valuation. CQI, TQM, Six-Sigma, Lean, etc.

5 Quality Metrics Predicting The Future Of Manufacturing

IQMS

Bottom Line: Manufacturers are reaching a new level of results in 2018 because they have clearer, more actionable insights based on real-time manufacturing and quality metrics than ever before. Quality Metrics Enable Customer-Driven Manufacturing Networks.

Lean in the Back Office … Why is it so difficult?

Supply Chain Game Changer

Check out 10 Signs You Should Reboot Your Lean Program! Implementing a Lean program on the Manufacturing floor, in a Warehouse operation, or in a Distribution Centre is challenging enough. In one company I was a part of no one knew what Lean was. Subscribe Here! Email Address.

Lean 65

Metrics and Issues to Consider in SQM (Supplier Quality Management) By 5 Big Industries

Cerasis

In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. In today’s post, Chuck will take it a step further and break down metrics and issues to look out for by 5 main industries: Pharmaceuticals. Review of SQM Metrics and Issues Across 5 Core Industries. #1: Trend Metrics Collected per Site.

Manufacturing Metrics that Actually Matter (The Ones We Rely On)

synchrono

LNS Research blogger Mark Davidson said, “When it comes to metrics, it’s often said that what gets measured gets done.”. Mark also writes: “Metrics that have the attention of business and manufacturing leaders tend to be those that get measured and improved upon by their employee teams.”. But are employees being rewarded for metrics that do not in turn reward demand-driven flow and the customer signal (both real and imagined)? Metrics for Action.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

Editor’s Note: This is the first in a three-part series on Supplier Quality Management processes and how to evaluate your suppliers from Chuck Intrieri of The Lean Supply Chain. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

3 Components to a Complete Lean Transportation Management System

LeanCor

Lean thinking can help organizations develop and maintain a fast, stable, efficient transportation management system. When shippers apply lean thinking to people, process, and technology in transportation, the results are significant. Lean Leaders invest time, effort, and resources for team member training and education, and ensure the appropriate curriculum for all levels of the organization. This investment and focus on process discipline is the lean way.

Lean 186

Metrics that Matter: Manufacturing Performance Benchmarking

QAD

When comparing business metrics , there are four primary types of benchmarking to consider: Internal benchmarking measures improvements that can be made to a business process or function internally and within the organization. Generic benchmarking provides a common basis of comparison using foundational metrics or unrelated business processes and functions that can be practiced in the same or similar ways independent of industry.

Metrics that Matter: Manufacturing Performance Benchmarking

QAD

When comparing business metrics , there are four primary types of benchmarking to consider: Internal benchmarking measures improvements that can be made to a business process or function internally and within the organization. Generic benchmarking provides a common basis of comparison using foundational metrics or unrelated business processes and functions that can be practiced in the same or similar ways independent of industry.

FAQ: Is Demand-Driven Manufacturing the Same Thing as Lean?

synchrono

Often, they’re focused on Lean Manufacturing or at least some element of it. However, at some point in the conversation, they will inevitably ask, “Is Demand-Driven Manufacturing the same thing as Lean Manufacturing?”. Demand-Driven Manufacturing isn’t synonymous with Lean or other related initiatives such as Theory of Constraints. Both Lean Manufacturing and Theory of Constraints emphasize managing variability as part of a continuous improvement effort.

Lean 32

5 Ways to Optimize Your Logistics & Transportation with Lean

Arkieva

Are you using lean in your logistics and transportation management? Lean is a new way of doing business. The transportation company’s culture and behavior should change to apply Lean thinking. Lean thinking focuses on the elimination of all waste to bring value to the customer, beyond the customer’s expectations (where waste is defined as any non-value added process). The goal in Lean Transportation is to use the ‘Eight (8) Right’s: Right Materials.

Lean 68

Smooth the rough spots with TOC, then Lean – and fine-tune with Six Sigma

synchrono

Here we are at the final installment of our four-part, Sandpaper blog series about when to use the tools of Lean Manufacturing, the Theory of Constraints (TOC) and Six Sigma to address constraints, drive flow and promote continuous improvement. There are some improvement metrics that in my opinion, are based on funny numbers. Let’s quickly go through the steps to using TOC and Lean Manufacturing—before you try to use Six Sigma to significantly move the needle.

You are Here!

synchrono

. . Where to Start Your Lean Journey. Planning Your Lean Journey. Like visitors to the Mall of America, manufacturers looking to apply Lean principles start in the same place. Their “directory” is the 8 types of waste identified in Lean: Overproduction – Manufacturing more than is needed to fill customer orders. Here are a couple of recently published resources that can help you get started: How SyncKanban Addresses the 8 Types of Waste in Lean.

LEAN throughtout the Supply Chain

The Lean Supply Chain

Some supply chain challenges are: lack of communication, insufficient collaboration, poor IT system integration, inadequate metrics, limited service level agreement, late deliveries, risk management, security, hacking, potential cyberattacks, errors in packaging and dunnage, limited productivity of resources, lack of synchronization, inadequate product flow, insufficient support of the SSII work processes, and repetitive operational problems. Why extended Lean in the Supply Chain?

Lean 56

How to Become a Lean, Green Manufacturing Machine

Cerasis

Lean and green are not only trendy topics, but they also make good business sense, especially for manufacturers. Get Lean the Easy Way. In it’s purest form, lean manufacturing is about eliminating waste and increasing quality and consistency — despite the pundits who insist you can be lean only if you can spell and pronounce words such as kaizen, kanban and heijunka. Lean success doesn’t mean approaching 100 percent machine utilization.

Lean 257

5 Keys to Implementing Improvement Initiatives

The Logistics of Logistics

My particular improvement soapbox is Lean Management with some Six Sigma thrown in for good measure. The principles can be applied to anything, just like Lean and Six Sigma. Believe it or not Toyota DIDN’T invent Lean. It will be tricky to drive change because they are likely the CEO’s “dashboard metrics”. Many measurements are sacred to the board or other metric owners. Every industry seems to have its silver bullet for creating improvement.

Online Lean Training

LeanCor

Online Lean Training and Dealing with Resistance. “If Online lean training is a low investment, yet high impact way to benefit your organization. As with other lean training, leveraging online lean training will help your team members boost their knowledge and add cross-functional value. If implemented properly and prioritized by leadership, online lean training can bring actionable culture change to the organization.

Lean Six Sigma

LeanCor

Lean Six Sigma is designed to be a comprehensive program. This creates a challenge when trying to describe what Lean and Six Sigma have to offer when combined. Consequently, it is important for the logistician to understand Lean Six Sigma beyond theory, from a practical point of view. Many training courses and books will attempt to separate the Lean tools from the Six Sigma tools. Measure – defect metrics, data collection, sampling.

Lean Leadership

LeanCor

Creating Measurement Systems for Effective Lean Leadership. Lean leadership cultures have embraced this truth, and their measures of performance reflect that. Here are three ways that lean leadership based cultures create effective measurement systems: 1. A culture of lean leadership measures the performance of the process, not people. People are there to manage processes, so lean measurement systems need to measure how the process is performing.

Lean 120

Lean Project Leadership

LeanCor

Lean Project Leadership – A Local Case Study. As a lean project leader, one of your primary functions will be to train your nose to sniff out the waste in your project. Metrics and reports have their place, but they can’t tell the whole story. As a lean project leader you need to make yourself available. The lean project leader fosters a lean culture. In the service project, as volunteers improved the processes, the lean leadership multiplied.

Lean 179

How to Become a Lean, Green Manufacturing Machine

Cerasis

Lean and green are not only trendy topics, but they also make good business sense, especially for manufacturers. Get Lean the Easy Way. In it’s purest form, lean manufacturing is about eliminating waste and increasing quality and consistency — despite the pundits who insist you can be lean only if you can spell and pronounce words such as kaizen, kanban and heijunka. Lean success doesn’t mean approaching 100 percent machine utilization.

Lean 202

Lean Manufacturing and Continuous Improvement

synchrono

It almost seemed hackneyed: Lean manufacturing and continuous process improvement. Yet this intentional, ongoing process of improving services, and procedures to improve flow, customer satisfaction, quality, safety, and profit means nothing without metrics. Lean manufacturing teams convert vision statements into specific, actionable measures. Metrics Reporting System. Metrics that Drive Action. Building Muscle for Waste Awareness.

Lean initiatives and the Supply Chain

The Lean Supply Chain

Cost Reduction Options: Top Managementknows that lean can add value, but many still haven’t moved past the initial education stage into full-scale lean supply chain implementation. One reason may be that they haven’t made the paradigm shift as to how to implement lean. The Lean Supply Chain is a system of interconnected and interdependent partners that operate in unison to accomplish supply chain objectives. Lean Supply Chain Implementation Results.

Lean 47