Comments on: Clear and Relevant Metrics http://www.leanblog.org/2009/06/clear-and-relevant-metrics/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: First Post « Beyond Lean http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-9860 First Post « Beyond Lean Thu, 13 May 2010 13:52:02 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-9860 [...] lean and how I see lean in the world around me.  I tried working on these by guest blogging at the Lean Blog, but I had no accountability so I did it a couple of times and then made excuses as to why I [...] [...] lean and how I see lean in the world around me.  I tried working on these by guest blogging at the Lean Blog, but I had no accountability so I did it a couple of times and then made excuses as to why I [...]

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]]> By: Matt Wrye http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-5134 Matt Wrye Tue, 30 Jun 2009 12:43:36 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-5134 I couldn't agree more with you, Pete and Bruce. OEE is a very abstract measurement to me and in most cases is just used because that what people are told to use. I have found that operators can not act on OEE but when you break out the components of OEE, then the operators understand those metrics and can act on them. I couldn't agree more with you, Pete and Bruce. OEE is a very abstract measurement to me and in most cases is just used because that what people are told to use. I have found that operators can not act on OEE but when you break out the components of OEE, then the operators understand those metrics and can act on them.

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]]> By: Bruce Baker http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-5129 Bruce Baker Mon, 29 Jun 2009 20:36:48 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-5129 I don't think OEE would be a good metric to drive change because it is kind of an abstract concept to a lot of people in most organizations. If you think about policy deployment -- start with some very high level 5 yr goals and then drill down at the next level of the organization (agreeing on what should be measured and HOW we are going to get the desired improvement) -- the OEE is often something that gets "drilled through". It isn't a bad trailing metric that should show year over year improvement under the assumption that you are adjusting the divisor of the performance metric to match TAKT (synchronizing to demand). So I think it is a good trailing metric but not a good actionable metric. Policy deployment needs to go 'through it.' I don't think OEE would be a good metric to drive change because it is kind of an abstract concept to a lot of people in most organizations. If you think about policy deployment — start with some very high level 5 yr goals and then drill down at the next level of the organization (agreeing on what should be measured and HOW we are going to get the desired improvement) — the OEE is often something that gets "drilled through". It isn't a bad trailing metric that should show year over year improvement under the assumption that you are adjusting the divisor of the performance metric to match TAKT (synchronizing to demand). So I think it is a good trailing metric but not a good actionable metric. Policy deployment needs to go 'through it.'

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]]> By: Pete Hinzy http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-5128 Pete Hinzy Mon, 29 Jun 2009 01:48:37 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-5128 When trying to determine the validity of a metric it is important to focus on the business problem. Some metrics, such as OEE, tend to be implemented because it is the "lean" thing to do, regardless of the organization's business model or situation. It can be extremely frustrating to have metrics "forced" upon a team and then have that team have to report out on them. <br /><br />In addition, it is important to keep the number of metrics to a minimum. This allows the typically limited resources to focus on the issues and corrective actions. Typically an organization can manage between 7-10 metrics. I was involved in an organization that believed that each department should have their own metrics and that all of the data should be shared at one daily "flash" meeting. While it was informative, the amount of information that was not acted on was overwhelming.<br /><br />Lastly, if possible, the metric owners, i.e. operators, machinists, etc, should be involved in developing the metric. They are closest to the process and will be able to create metrics that are meaningful to them. This requires that management trusts it people to understand the business and develop appropriate methods to track progress. When trying to determine the validity of a metric it is important to focus on the business problem. Some metrics, such as OEE, tend to be implemented because it is the "lean" thing to do, regardless of the organization's business model or situation. It can be extremely frustrating to have metrics "forced" upon a team and then have that team have to report out on them.

In addition, it is important to keep the number of metrics to a minimum. This allows the typically limited resources to focus on the issues and corrective actions. Typically an organization can manage between 7-10 metrics. I was involved in an organization that believed that each department should have their own metrics and that all of the data should be shared at one daily "flash" meeting. While it was informative, the amount of information that was not acted on was overwhelming.

Lastly, if possible, the metric owners, i.e. operators, machinists, etc, should be involved in developing the metric. They are closest to the process and will be able to create metrics that are meaningful to them. This requires that management trusts it people to understand the business and develop appropriate methods to track progress.

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]]> By: Mark Graban http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-5127 Mark Graban Sun, 28 Jun 2009 17:49:06 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-5127 Trey, not sure if your comment is clear or relevant... Trey, not sure if your comment is clear or relevant…

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]]> By: Trey http://www.leanblog.org/2009/06/clear-and-relevant-metrics/#comment-5126 Trey Sun, 28 Jun 2009 17:04:50 +0000 http://leanblog.bigbigdesign.net/2009/06/clear-and-relevant-metrics/#comment-5126 Six sigma can be defined as the process which increases the customer satisfaction & in turn increases the profits to the company. Six sigma can be defined as the process which increases the customer satisfaction & in turn increases the profits to the company.

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