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Key Performance Indicators (KPI) by Bernard Marr

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Process waste level

Strategic perspective

Operational processes and supply chain perspective

Key performance question this indicator helps to answer

To what extent are our processes lean and effective?

Why is this indicator important?

Companies aim to have effective and lean processes in place that minimise or eliminate any waste that occurs. Under the principles of a ‘lean enterprise’ (or simply Lean), any expenditure of resources for any purpose other than the creation of value for the end customer is considered wasteful and therefore a target for improvement.

Waste is therefore any activity that does not add value. In Lean, two types of waste are differentiated: (a) waste that is necessary for the system to function and (b) waste ...

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