Metrics and Lean Manufacturing Six Sigma

Although it may be tempting to measure performance based upon production numbers alone, that is only part of the picture. The transition to a lean manufacturing Six Sigma organization demands that processes are evaluated in terms of the impact upon customer requirements. Therefore, metrics that look solely at production numbers do not provide a true indication of how well any one process meets lean Six Sigma goals.

With customer expectations as the basis for any system of metrics, it is possible to identify redundancies, waste and variation in manufacturing processes. In addition, an organization's strategic goals for meeting these requirements should also be reflected in the measuring system. Defects identified by the metrics indicate areas where needs and goals are not adequately met, indicating areas ripe for lean manufacturing Six Sigma evolution.

Metrics in a Manufacturing Environment

Lean Six Sigma evaluates organizations in terms of processes. Any activity with an input/output is a process that may be measured and reworked to provide improved performance.

Within a manufacturing environment, there are a number of processes that contribute to how well or how poorly an organization meets customer requirements. In addition to the obvious, the number of units produced, other areas to consider include :

  • cycle times
  • product quality
  • product delivery
  • on hand inventory
  • usage of space on the production floor
  • productivity measures
  • supplier performance in comparison to organizational need
  • profitability
  • market share

In any lean Six Sigma environment, there are two types of possible metrics; performance and diagnostic. Implementation of both are vital in assessing how well customer requirements are met and what processes fall short of an organization's goals.

Performance metrics in a manufacturing environment focus upon external factors. These measurements would look at an organization's output, supplier and delivery processes.

Diagnostic metrics, on the other hand, look within an organization. Process steps and supplier inputs are the focus of these measurements.

While many assume internally-focused metrics are the best starting point, this is not the case. In order to develop a full picture of processes in terms of customer requirements, it is critical to start measuring with the customer, or externally. By implementing performance metrics first, it is possible to develop an understanding of the 'big picture'. This enables a more accurate examination of internal processes in the context in which the are performed.

With this data in hand, it is possible to identify and eliminate variation and defects. Production numbers, production quality and customer satisfaction can all be improved by developing a metrics system based upon lean manufacturing Six Sigma principles.