It seems to often be the case that as your manufacturing operation grows, the measurement of the efficiency of your performance becomes ever harder. When sales orders go up work in progress (WIP) increases, when inventory builds turnaround diminishes—all to the detriment of grasping how efficient or profitable each process is. To a certain degree, enterprise resource planning software (ERP) has helped in providing a continuous status assessment via the input of real time data from all operation aspects. ERP software, for this reason, is a valuable tool for the continuous improvement necessary for the modern lean manufacturer.
However, some assessment of financial, behavioral, and core process performances should be made on an on-going basis to provide mutually supporting testimony to the total continuous improvement ERP efforts of the company. For this reason, lean metrics have been established to allow a company to measure, evaluate, and respond to their performance in such a way that it does not sacrifice quality to satisfy quantity objectives, or increase inventory levels to achieve machine efficiencies. Often, these metrics are a means to discover (more…)