What Gets Measured Gets Improved

Oct 4, 2022 | Lean Six Sigma, Lean Tools, Process Transformation

For successful Lean Transformations, the role of measurement systems is critical. Measurement systems act as the compass, guiding organizations and helping them navigate their journey to operational excellence. As Peter Drucker famously said, “What gets measured gets improved,” and this mantra holds great significance in the context of Lean Manufacturing. In this blog post, we’ll explore the critical nature of measurement systems for a successful lean transformation, focusing on 9 common process metrics that illuminate the path to operational excellence.

  1. Process Cycle Time: The Chronometer of Efficiency

Process Cycle Time is the amount of time it takes to complete a process. This metric acts as a chronometer, measuring the heartbeat of operations. By scrutinizing cycle times, organizations can identify bottlenecks, streamline workflows, and enhance overall operational efficiency.

  1. Process Efficiency: Maximizing Resource Utilization

Efficiency, a cornerstone of lean principles, is a metric that gauges how well resources are utilized to achieve desired outcomes. Measuring process efficiency provides insights into waste reduction, improved productivity, and the overall effectiveness of operational processes.

  1. Process Effectiveness: Aligning Efforts with Objectives

While efficiency focuses on resource utilization, effectiveness delves into the alignment of processes with organizational objectives. This metric ensures that efforts are directed toward achieving intended goals, emphasizing the value delivered to customers and stakeholders.

  1. Downtime: The Nemesis of Productivity

Downtime, the silent thief of productivity, is a metric that measures the time during which production comes to a halt. Reducing downtime is pivotal for lean operations, directly correlating with increased operational efficiency and minimized waste.

  1. Production Cost: Financial Insights for Sustainability

Lean Manufacturing emphasizes cost-effectiveness, and measuring production costs provides organizations with a financial lens into their processes. Understanding and optimizing production costs contribute to sustainability and long-term success.

  1. Production Rate: Balancing Speed and Demand

Production rate measures the speed at which products are manufactured. Striking the right balance between production rate and customer demand is crucial for lean operations, ensuring that resources are neither underutilized nor strained.

  1. Process Capability: Ensuring Consistent Quality

Process capability assesses the ability of a process to consistently produce products within specified tolerances. Measuring this metric ensures that processes are reliable, reducing variations and enhancing overall quality.

  1. Quality Metrics: The Barometer of Excellence

Quality metrics encompass various indicators, including defect rates, customer complaints, and adherence to specifications. By measuring quality metrics, organizations can identify areas for improvement, prevent defects, and enhance customer satisfaction.

  1. Process Compliance Metrics: Upholding Ethical Standards

Ensuring adherence to regulations, standards, and ethical practices is paramount in Lean Manufacturing. Process compliance metrics measure how well a process aligns with legal requirements, industry standards, and ethical guidelines.

Peter Drucker’s famous quote captures the importance of measurement systems in Lean Transformations. By systematically measuring and analyzing these nine common process metrics, organizations gain visibility into their operations, identify areas for improvement, and drive a culture of continuous enhancement.