Lean Management KPIs

Lean Management Key Performance Indicators

Lean Management KPIs Metrics

Lean management is one of the rapidly growing business concepts. Its focus is to meet customers’ needs and sustained improvement by decreasing the errors and improving the work process.

Let us assume your business is doing great, and you are thinking about expanding. When a company strives to grow their business, they go through a tough phase. Not every company can survive this phase.

They have to make significant decisions before they expand, like if they should invest money on new equipment, hire more staff, etc.

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Your one choice can play a huge role in your company’s future. In situations like this, lean management comes to rescue. In can completely change your business process.

You do not have to be a business geek to understand that, the less the waste, the more efficient the company is.

To run a successful business, you must have a clear idea about your company, and to get a clear idea of your business, you must measure the success of your business.

Some Key performance indicators that help you to measure the success of your business are:

Overproduction

When a company produces more products than it needs, it indicates its inability to predict the market value of their product.

It does not only affect the overall lead-time, but it also wastes money and inventory. Overproduction occurs because of faulted workflow, wrong forecast, etc.

Over-processing

In every company, there are already too many things to do. If you waste your time and energy on the same thing repeatedly, you will not be able to meet the goals of your organization on time.

Over-processing occurs because of the communication gap. Human errors and unorganized work processes can also cause over-processing.

Transport

Before making any major decision, a company should consider a few things. Cause sometimes one simple mistake is enough to take down the company.

When a company designs its plants, it should consider transportation time, fuel cost, and other transportation costs. The decrease in the transport cost and time will automatically reduce the lead-time.

Defects

For a single flaw, a company may have to pay a considerable price. Defects wastes resources, money, and time. It also affects the customer’s satisfaction.

Companies should monitor their production closely and repair the machines when needed. Proper maintenance and supervision can reduce defects.

Waiting period

Suppose you set up a meeting with your clients and marketing team without knowing the schedules of your marketing team, and later you find out your colleague already sent that team for another meeting.

In situations like this, you have no option but to wait. It occurs because of miscommunication and insincerity. Sometimes it can cause big chaos. Therefore, it is better to stay alert and have a clear idea about every important thing.

Motion

When you move more than you need for an operation, it is called motion. If you do not plan your activities properly, you may have to move more than you need.

You might not find the things you need, or you might have to go to the same place for one task. If you plan your operations prior, you can avoid motion. You can collect all the items at a time. Common sense and sincerity can prevent Unnecessary Movement.

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