What is Lean?

Manufacturing Measurements & KPI's
It is important to have meaningful measurements in place within a business, in order to monitor performance. By assigning numbers, it can help us to understand what is happening and communicate this to others. It can also help us to set targets and take appropriate action to make improvements. Measurements are useful at all levels throughout an organisation but it is important that the connections between the various measurements are understood and that we measure to take action - not just to record history.

Key Performance Indicators (KPIs) are the measurements which are selected by a company to give an overall indication of the health of the business. Traditionally, KPIs are dominated by historical, financial measurements but are more meaningful if they also include operational measurements. The Balanced Scorecard approach considers four aspects: Financial, Customer (or externally) oriented, Business Process (or internally) oriented and "Learning and Growth", as illustrated in the diagram above. Company Objectives are usually produced as part of the annual planning process. These objectives often relate to increasing turnover,

increasing productivity, improving quality, reducing costs and improving delivery performance. Policy Deployment is the process of ensuring that the company objectives are effectively deployed throughout the whole organisation. Company objectives should be cascaded and translated into: departmental objectives … team objectives … individual objectives. Thus enabling an individual to see how his or her contribution can make a difference to the business. To find out more contact your local regional MAS office.

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