4Lean Performance Measurements

DOI: 10.4324/9781003304098-4

In this chapter I am going to explain a basic set of lean performance measurements, which can be used in any lean company. The chapter will cover what to measure, how to calculate the measures and how to develop an integrated set of lean performance measurements for a lean company. Later in Chapters 7 and 8 I will explain how these measurements are used in combination with lean practices to control, improve, manage and plan value streams.

One of my earliest “lean lessons” as a CFO was understanding the importance of lean performance measurements in a lean company. Prior to Bullard’s lean transformation, we were very traditional when it came to measuring manufacturing operations. We ...

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