Agile and Lean Metrics

When I'm working with a client, I always start with leadership planning and I always start that with a discussion of metrics.  I'm using the term "metrics" as a synonym for measures...how we keep score. 

When I first go to a client, I ask a lot of questions about the present measures and how they are used.  Usually, I find that:
  1. There aren't enough good metrics to help managers and employees really tell how well they are performing,
  2. They metrics they do have aren't being used well, i.e., they aren't being communicated across the organization to create improvement.
In the leadership planning phase, then, we work to develop a set of metrics that will allow us to identify improvement opportunities and to track the progress of the initiative.

The Metrics Companies Tend to Have

Rarely do companies have no shop floor metrics (though I have run into that..."How do you measure how well you're doing?"  "We just know.") but they have have too few metrics.  Often, there is something related to individual worker or machine productivity or efficiency.  Sometimes there are others relating to scrap or on time delivery (and both are good).  I see safety metrics, too.  The good old "Days since our last lost time accident" board seems to be commonplace.

The Metrics Companies Don't Have

Often, some of the good metrics mentioned above, e.g., on time delivery or scrap are missing.  Measures of machine and equipment availability (or downtime) are often missing.  Measures of tooling availability are almost never in place, yet not having a tool ready or functional is a common barrier to production.  Cycle times of any sort are rare; overall manufacturing cycle time, changeover times, turnaround times for tooling.  Inventory velocity (inventory turns or days in inventory) often exist but only the accountants tend to know what they are. Administrative performance and cycle times (on time quotes, product development cycle times, new order to first ship) are never present before starting an agile initiative in my experience.

Get the Dashboard

It's important to have a dashboard of, say, nine to twelve metrics that give an overview of how well the organization is implementing agile manufacturing tools and concepts. I'll write more as to how to do this and what sorts of metrics should be included.

 

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