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Key Takeaways

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

67%

Competitive advantage in price and service

45%

Customers demanding shorter order cycle time

44%

Customers demanding reduced prices

34%

Corporate objective to reduce inventory

29%

Pressure to improve return-on-invested-capital

26%

Increase product quality

23%

0%

20%

40%

60%

80%

100%

Source: AberdeenGroup, March 2006

All print and electronic rights are the property of AberdeenGroup © 2006. AberdeenGroup 7

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