Measurement and Return on Investment in the Lean Organization
Lean Nation, It is nice to return to the blog scene which I have committed to doing monthly. Today's blog is on measurement and developing a return on investment (ROI) using a lean improvement system. In order to get to a return on investment, you must begin by measuring both your processes and your results. Processes are operational indictors that tell you if your process is running as designed. Results are what show up when your processes are robust and running well. Before I go on, let me state that measurement is critical because it is the only way we can show improvement. If you can't measure it, you can't improve it. As we go further in this topic, I'd like to offer that measurement is "easy". This statement is true once we have a good idea of what to measure. Candidates for measurement in an improving environment comes from five dimensions. Quality, Delivery, Cost, Staff Morale, and Growth. Collectivel...