Last issue we looked at monuments and remedies. As we continue to work our way down through the lean tools, we will now examine performance metrics.
||Value stream mapping
||Kaizen and Kaikaku
||Quick change over (SMED)
||Monuments & remedies
||Lean performance measurements
Lean performance measurements are not limited to but include the following attributes:
- Few versus many
- Real time and actionable
- Generally do not include financial metrics
- If it does facilitate gains in productivity, delivery and quality, it probably is not relevant
- Will identify change and assist in improvement
- Will link manufacturing reality to management
First, Lean Performance Measurement will provide a base line assessment. This is the launching pad for continuous improvement. The old adage that you get what you measure, so you better be measuring what you value, is the foundation for performance measurement.
It is easy to determine what someone or an organization values. Just observe what is being measured. With Lean Measurables we generally measure what others ignore and ignore what others measure.
Outcome is driven by measurements. People and processes react to and deliver what is being measured. This leads us to consider all the metrics, currently in place, to see if they are driving the desirable outcomes. An output is referred to as Y and an input is X. Therefore, Y is equal to the function of the X's. One can't improve the Y's without manipulating the X's.
If the output of interest is productivity regarding a particular machine, then productivity is the Y. Now list the X's:
These are just a few of the possible X's. The question is, which are the "Red X's"? Those would be the mission critical features that, if monitored, would assure the Y. In most of today's manufacturing environments, the Operator accounts for no more than 7%. So I must ask the question "why do we continue to assess labor performance as the primary metric"? If you don't do this, great; if you do, stop. Remember that financial performance does not create productivity on the shop floor.
What is needed are measurements of productivity. To this end, the following Lean Performance Measurables have been organized:
||FTT: First Time Through
||OEE: Overall Equipment Effectiveness
If a manufacturer maintains control of these features, gains in productivity and quality are guaranteed. In order to achieve improvement, it may be necessary to temporarily measure other features. Remember that outcome is driven by measurement; so make sure the metrics are driving the right things.
Explanation regarding how to conduct the recommended metrics goes beyond the scope of the short article. However, there are some excellent references. I recommend "Lean Manufacturing Measurables" provided by Ford Motor Company. Additionally, the book by Brian Maskell, "Making the Number Count", is a must read.