Lean Management System LMS:2012

Lean Key Performance Indicators  ◾  61

generate any of the wastes in question, but LMS:2012 (like official standards

for quality, environmental, and energy management) focuses on operating

processes.

Lean KPIs and Goldratt’s Theory of Constraints

In the Theory of Constraints (TOC), throughput (product ready to ship and

with customers who want it), inventory, and operating expense provide

everything a manager needs to know about the health of a production con-

trol system. Taiichi Ohno (1988, ix) adds lead time or cycle time as a KPI:

“All we are doing is looking at the time line from the moment the customer

gives us an order to the point when we collect the cash. And we are reduc-

ing that time line by removing the non-value-added wastes.”

Lead an ...