Almost any manufacturing company has at least flirted with adopting some level of Lean strategy to facilitate improvements. The unfortunate truth is that many of these Lean programs make initial improvements and then stumble due to corporate cultural inertia or loss of personnel integral to the continuation of the Lean program.
It bears repeating what has become almost a cliché: Lean is not a destination, but rather, a journey. Lean is not a one-time project. It requires a deep and wide commitment that is inclusive of all functional units and all levels within the organization.
Lean must involve ongoing measurements of progress. There are four specific vital metrics that will help lean managers maintain their forward motion with regard to implementing lean.
What are your productivity metrics?
1. Number of touch points and time in the quote-to-order process
- The period of time it takes your sales force to turn a quotation into an order is telling in terms of your ability to deliver on unique customer demands.
- How many approvals, evaluations, estimating calculations and other functions must a special order go through before it is approved, quoted and booked?
2. Number of touch points and time in the order-to-cash process
- How long does it take an order to be processed, built, shipped, delivered and billed?
- How many special approvals, authorizations, quality controls and other checks must a special go through prior to billing and collecting revenue due?
3. Number and frequency of supply chain items that cannot keep pace with customer demand (Stock outs)
- What items most frequently delay the completion of an order?
- How often does this happen?
4. Number of bottlenecks in your production processes that restrict the flow of products to your customers
- Where are your primary constraints?
- What can be done to alleviate these constraints?
By benchmarking these vital areas against world-class performance standards, Cincom can diagnose your productive health. If needed, Cincom can prescribe solutions that provide a “Lean” booster shot that is immune from the benefit shrinkage inherent in the classic home-grown solutions. Unlike the Lean pioneers that interpreted processes from seminars and text books, we bring proven solutions that adapt to your environment but assure your bottom line the ongoing benefits.
Is it time for your organization to schedule a productivity checkup?
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