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The Lean Benchmark Report

Figure 11: Relative Performance Improvements

100%

Order Fill Rate (%)

Yield (%)

On-time Delivery (%)

96%

93.66%

92%

90.92%

90.23%

    • 90.47

      %

    • 88.31

      %

87.63%

88%

84%

80%

Best in Class

All Other

Best in Class

All Other

Best in Class

All Other

Participants

Participants

Participants

Source: AberdeenGroup, March 2006

Laggard Steps to Success

By defining value in the eyes of the customer and deploying key Lean tools and tech- niques, lagging companies will create an opportunity to significantly improve operational performance and customer satisfaction while reducing operating costs.

  • 1.

    Map the value stream from the customer to the supplier. Identify the specific resources and actions required to deliver a specific product to a specific customer. Create a future state of the value stream map. Identify and categorize waste in the current state, and eliminate it.

  • 2.

    Improve organization of the work environment. Commit to developing a more professional work environment by aggressively implementing the 5S’s (sort, set in order, shine, standardize, sustain).

  • 3.

    Implement appropriate Lean techniques and pilot Lean approaches. Evaluate current bills of material and bills of process. Consider “postponing” fi- nal finishing or assembly instructions until the customer order comes in, then es- tablish a workcell team to perform these specific tasks.

  • 4.

    Prove results and look for new opportunities. Measure key indicators such as yield, throughput, and quality before and after the Lean pilot. Once a pilot has been operational for several weeks, promote team results to management and look for additional opportunities to “Lean out” operations.

All print and electronic rights are the property of AberdeenGroup © 2006. 24 • AberdeenGroup

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