Aberdeen Lean Scheduling and Execution Benchmark Report

Lean Scheduling and Execution May 2007 Lean Scheduling and Execution Page 2
Executive Summary Under the ever-widening Lean umbrella, manufacturers are left grasping for what it means to be Lean, which aspects of today's Voice of the Lean initiative are delivering tangible results, and where to turn for Manufacturer the answers to these questions. In response to these needs, The Our company believes Lean Scheduling and Execution Benchmark, based on the survey that Lean is a philosophy responses of over 400 manufacturing enterprises, highlights the critical to the success of the entire enterprise - operational performance benefits that Best-in-Class manufacturers from quote to cash. Each attribute to the use of Lean scheduling and execution principles. component of the extended value chain can Best in Class Performance be optimized through the application of Lean tools, The value of Lean principles and technologies is tied to the results but it is the whole that attributed to their use. In the following analysis, Aberdeen used must be integrated to three KPIs to distinguish Best-in-Class. Across these metrics Best- realize the largest, long in-Class manufacturers averaged the following performances: term improvements. . 95% On Time Delivery Derrell S. James . 91% Throughput VP of Operations Genicon . 79% Reduction in Manufacturing Cycle Time
Competitive Maturity Assessment Survey results show that firms enjoying Best-in-Class performance shared several common characteristics which include: . Standardized Lean scheduling and execution best practices based on Continuous Improvement team findings. . Autonomous Lean decision-makers enabled with actionable factory floor intelligence. . Established Lean centers for excellence.
Required Actions To achieve Best-in-Class performance, manufacturers must: . Measure Throughput and Manufacturing Cycle Time at least daily. . Measure On Time Delivery, WIP, and Scrap in real-time. . Deliver factory floor data as actionable intelligence to Lean scheduling and execution decision-makers. . Implement Lean Software Applications. . Integrate Lean Software Applications with ERP and automate Lean tools.
© 2007 Aberdeen Group, Inc. Telephone: 617 723 7890 www.aberdeen.com 053107 Lean Scheduling and Execution Page 3
Table of Contents Executive Summary..............................................................2 Best in Class Performance......................................................2 Competitive Maturity Assessment............................................2 Required Actions .................................................................2 Table of Contents ................................................................2 Table of Contents ................................................................3 Chapter One: Benchmarking the Best in Class...............................4 Aberdeen Analysis ...............................................................4 Maturity Class Framework......................................................4 Metrics Measured.............................................................5 Best in Class PACE Model ......................................................6 Chapter Two: Benchmarking Requirements for Success...................8 Competitive Assessment .......................................................8 Organizational Capabilities and Technology Enablers .................9 Chapter Three: Required Actions............................................. 11 Laggard Steps to Success.................................................... 11 Industry Norm Steps to Success ............................................. 11 Best in Class Steps to Success ............................................... 12 Appendix A: Research Methodology........................................ 13 Appendix B: Related Aberdeen Research ................................. 16
Figures Figure 1: Share of Best-in-Class Measuring KPIs ...............................5 Figure 2: Share of Best-in-Class Facing Market Pressures ...................6 Figure 3: Share of Manufacturers Using Automated Lean Tools........ 10
Tables Table 1: Top Performers Earn "Best-in-Class" Status:.........................5 Table 2: Best-in-Class PACE Framework ........................................7 Table... [download for more]