Lean Performance Measures is a one-day beginner level workshop and should be attended by the management team of any organization undergoing a Lean transformation. Measurements drive behavior, thus they are an extremely important aspect of management that is frequently overlooked. Measure the wrong indicators and you will get the wrong behavior!

One example of a misguided measurement would be production output or production efficiency. Is it better to produce 100 units/day or 110? If we were measured by how much we produce, we would certainly think that building 110 units must be better than building 100. However, what if our customer only wants 100 units? What if they only want 80? Ignoring the rate of customer demand is probably the most common mistake that companies make when they measure their performance. Their processes are performing superbly, with efficiencies of 99+%, but they are drowning in inventory debt!

• Variable costs are listed as totals, instead of per unit (if the word "variance" appears anywhere in your performance reports, your company does this)
  • Labor hours
  • Material costs
  • Consumable costs
• Fixed costs are listed per unit, instead of as totals
  • Salaries
  • Building & equipment amortization
• The rate of customer demand does not appear in most measures
  • Inventory
  • Production
• Production is tracked instead of sales

Like most Lean Solutions workshops, Lean Performance Measures combines classroom theory with case study simulations and a practical exercise to reinforce the training. A simulation is used to demonstrate how poor measures can sabotage a company's chances for success. During the practical exercises, your team will develop measures that will guide your organization on your Lean journey by identifying which activities are removing waste and adding value to the customer.

• Illustrate how measures drive behaviors
• Review some essential Lean performance measures
• Identify measures for different levels:
  • Facility/organization performance
  • Value stream performance
  • Cell performance
• Learn how to link the three measurement levels together

• Review of Lean Principles
• Measurement and Behaviors
• Organizational and Facility Measures
• Value Stream Measures
• Cell Measures
• Workshop Summary

Upon completing this workshop, participants will better understand how measures drive behavior within an organization. Your team will have created five or six key operating indicators and linked them through all levels of the organization, from the executive level to individual work-cell performance.

Since the use of key operating indicators is primarily to assist management in running an organization, this workshop is tailored for management personnel. However, participation from supervisors, team leaders and operators is also beneficial, especially when linking the value stream and cell measures to the overall company objectives. They will also be key in communicating the reasons behind the new measures to the rest of the team.

Regardless of who attends this workshop, the results need to be clearly communicated to the entire organization so that employees understand the direction of the company and can contribute to its success.

Most attendees should have some prior Lean knowledge. If Lean is new to your organization, consider starting your Lean journey with either Launching the Lean Initiative (which includes this workshop) or Lean Principles. There are also several articles and books available on Lean which will give participants a good foundation. Check our website for articles and recommended readings.

As with all our workshops, each participant receives their own workshop binder so they can keep their own notes for reference once the workshop is over. Participants also receive a Certificate of Completion to show that they have completed a Lean Solutions workshop.

The materials from the workshop may be redistributed within the company. Many organizations choose to hold short training sessions using these materials to educate the rest of the staff on the new performance measures, so that everyone understands how they can contribute to the success of the company. Additional workbooks are also available (call for pricing).

You also receive a 100% guarantee! If you are not satisfied either with the material covered or the teaching style of the workshop facilitator, there will be no charge! If we fail to meet your expectations, the only thing you will be asked to pay for will be the expenses incurred.

Although our workshops are designed to give the knowledge to you and your team, follow-up days are recommended to review progress made following each workshop. Typical organizations require one to two follow-up days about 2-4 weeks following the workshop. These follow-up days also help to ensure that the principles learned during the workshop are not forgotten or neglected after the workshop is over. If you are interested in a greater involvement by one of our expert facilitators, check out our On-Site Lean Implementation solution.

The base cost for this one-day workshop is $3,500, which covers the first 15 participants. Classes larger than 15 participants will be taught by two facilitators and cost $6,000. In order to keep the class size manageable and to facilitate the learning process, Lean Solutions restricts the maximum class size to 30 participants. Follow-up days cost $1,500-$2,000 per day, depending upon the experience of the facilitator. There is a 10% discount available for long-term engagements. Expenses are in addition to the costs outlined above and include cost of travel and accommodation (if required) as well as meals and workbooks ($20 per participant).

Lean Solutions will tailor workshops to meet each company's requirements. Call or e-mail for more information or to schedule a workshop.