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The Lean Benchmark Report

Chapter Three: Implications & Analysis

Key Takeaways

  • Pushing Lean beyond the four walls of manufacturing leads to dramatic results; best-in- class Lean organizations are exceeding expectations more frequently than their would- be competitors.

  • Measuring and monitoring key business processes daily or more often are enabling best-in-class companies to outperform their competitors.

  • Technology solutions are playing an increasingly important part in terms of institutional- izing processes, improving productivity, and helping to drive culture change.

C ompanies that have mastered Lean basics are meeting or exceeding shareholder expectations. According to our research, approximately 80% of best-in-class, 60% of industry average, and 40% of laggard companies are meeting, if not exceeding, expectations in key areas such as the reduction of inventory and assets, manufacturing and design cost reductions, improved manufacturing and supply chain flexibility, im- proved product quality, and improved customer service (Table 4). In addition, between 18%-26% of better performing organizations have exceeded expectations in these key areas. These strongest performing companies have not only embedded Lean techniques into core business processes, but have also institutionalized these processes with tech- nology solutions, integrated Kaizen programs (for continuous improvement) into their culture, developed leaders with strong mentoring capabilities, and continue to drive op- erational excellence by remaining focused on key measurements.

Exceeded Expectations

Met Expectations

Exceeded Expectations

Met Expectations

Exceeded Expectations

Met Expectations

Reduce inventory and assets

24%

60%

10%

54%

2%

28%

Mfg/design cost reduction

26%

57%

11%

54%

3%

38%

Improve mfg & SC flexibility

24%

60%

10%

54%

3%

46%

Product quality

22%

65%

3%

69%

3%

53%

Customer service

18%

71%

8%

64%

3%

56%

Laggard

Table 4: Measuring Success

Best in Class

Average

Source: AberdeenGroup, March 2006

All print and electronic rights are the property of AberdeenGroup © 2006. AberdeenGroup 15

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