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DPA LeanWise . . . continued (page 3 of 3)

4/MEASURE

Sustained change needs to constantly ask and answer the question: How well are we doing?  We measure this through:

- - Customer satisfaction
- Operating performance
- Financial accounting of Lean benefits (this is critical since standard accounting practices usually do not adequately account for Lean benefits and they do not measure value streams.)

The LeanWise business measurement philosophy is simple: the measurement process must be adaptive to the environment and bring value. We employ periodic quantitative process assessments and procedures to determine what is measured and interpret results. We will help you develop a set of integrated metrics customized to your organization and its stage of maturity in the Lean process.

Typical metrics to account for Lean improvement:

Cell • Hour/Day production
• WIP v. Standard Work
• OEE
• First Time Through
Value Stream • Sales per Person
• On Time Delivery
• Dock to Dock Time
• Average Cost per Unit
• AR Days Outstanding
Enterprise • EBITDA
• Sales growth
• Inventory days
• On Time Delivery
• Customer Satisfaction
• Sales per Employee

5/SUSTAIN

Now more than ever, the success of business organizations in creating and sustaining excellence will depend on the vision, talents, and energy of their staff and on their long-term commitment to continuously improve. LeanWise builds on a solid foundation of customized, people driven solutions. In our Lean world, the 4E's Sustain Change:

1. Everyone Learns
2. Everyone Leads
3. Everyone Facilitates
4. Everyone Wins

Second Set of Eyes Periodic Audits: Sustaining the Lean transformation requires using a “second set of eyes” – literally another set of eyes to review the company’s progress on behalf of the customer to make sure real value is being provided. This helps sustain the gains made by an organization by bringing an outside objective perspective to identify what direction change should take to bring greater value to the customer.

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The most recent survey of the Lean Community by the Lean Enterprise Institute revealed that “backsliding” to old ways of working was the main obstacle to Lean transformations.