The Lean Benchmark Report
Chapter Two: Key Business Value Finding
Top drivers of Lean include the need to improve operational performance (67%), gain competitive advantage (45%), and decrease order cycle time (44%).
Best-in-Class organizations are more dedicated to mastering the basics; (e.g. value stream mapping 68% vs. 23% (industry norm) & 4% (laggards); Kanban 73% vs. 24% (industry norm) & 7% (laggards).
Excel and manual solutions account for close to half of solutions; however, custom solu- tions, ERP, and Lean Specialty/MES solutions are playing a larger role.
C ompanies adopt Lean for a variety of reasons. For instance in the automotive, aerospace, and a growing number of other industry sectors, “going Lean” is a re- quirement for doing business; it is mandated by OEMs and major aircraft compa- nies. Also industries that ultimately serve the consumer have seen new mandates over the past couple of years; in many cases delivery times dropped radically from a few weeks to a few days and in others mandated price reductions are taking their toll. How- ever, for most companies this equates to reducing costs and increasing revenue (i.e., im- proving operational performance was cited by 67% of respondents as one of their top three challenges).
Figure 3: Top Drivers of Lean
Pressure to improve operational performance
Competitive advantage in price and service
Customers demanding shorter order cycle time
Customers demanding reduced prices
Corporate objective to reduce inventory
Pressure to improve return-on-invested-capital
Increase product quality
Source: AberdeenGroup, March 2006
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