The Lean Strategies Benchmark Report
37 pages
English

The Lean Strategies Benchmark Report

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37 pages
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AberdeenGroup
The Lean Strategies
Benchmark Report
Manufacturing Excellence
Moves to the Value Chain
June 2004
Sponsored by The Lean Strategies Benchmark Report

Executive Summary
ean has become the mantra for making manufacturing competitive in many indus-
trial and consumer-oriented markets from aerospace to automotive to consumer L durables. All of these markets are under intense global competitive pressure with
customers demanding more price and service concessions than ever. Aberdeen’s
Lean Strategies Benchmark Report finds that the top five market factors for adopting
Lean strategies all point to manufacturers using Lean programs to help boost profit in the
face of price concession and increased customer service demands. Those manufacturers
that fully embrace Lean programs and stick to the journey reap the rewards; the number
of best-in-class performers triples when Lean programs extend beyond two years. How-
ever, a Lean program is about change and the associated risk. Despite Lean’s publicized
successes, many manufacturers are still finding themselves adopting it slowly because
they have not been able to quantify and track the business value delivered via Lean initia-
tives.
Key Business Value Findings
Achieving superior business performance with a Lean strategy is linked to three ele-
ments: pervasiveness, commitment, and extension across the value chain. When manu-
facturers applied a Lean strategy across the organization, had top management ...

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Aberdeen Group
The Lean Strategies Benchmark Report
Manufacturing Excellence Moves to the Value Chain
June 2004
Sponsored by
 
The Lean Strategies Benchm
Executive Summary L tedr  aiunar la hbaalnse dsb.  ecAcolonl smouef  mtthehree- somer iaemnntatrreak dfe tosmr  aamrrkea ekutisnn dgf reorm imann tauefenarsocets upgraliocnebg a tlc oo cmaoumpteopteimttiiotvtieiv veie n  ptrmoe ascnsouy nriesn udwmuitseh-r  customers demanding more price and service concessions than ever. Aberdeens Lean Strategies Benchmark Report  finds that the top five market factors for adopting Lean strategies all point to manufacturers using Lean programs to help boost profit in the face of price concession and increased customer service demands. Those manufacturers that fully embrace Lean programs and stick to the journey reap the rewards; the number of best-in-class performers triples when Lean programs extend beyond two years. How-ever, a Lean program is about change and the associated risk. Despite Leans publicized successes, many manufacturers are still finding themselves adopting it slowly because they have not been able to quantify and track the business value delivered via Lean initia-tives. Key Business Value Findings Achieving superior business performance with a Lean strategy is linked to three ele-ments: pervasiveness, commitment, and extension across the value chain. When manu-facturers applied a Lean strategy across the organization, had top management actively engaged, and integrated the sell and supply sides of the value chain, they were as much as three times as likely to be an industry best-in-class performer. These companies were anywhere from two and one-half to six times less likely to be as severely impacted by pricing and service demands of their customers and their related squeeze on profits. Implications and Analysis Most manufacturers are in catch-up mode with their vision of Lean operations and must rethink tactics and tools to accelerate adoption and improve effectiveness, as evidenced by the following findings:  Sixty-seven percent of the respondents use Lean techniques sporadically.  Eighty-seven percent of the respondents have Lean knowledge in the hands of a few individuals.  Ninety-three percent of the respondents still rely on spreadsheet- and paper-based solutions to perform high-value functions, such as line design and load leveling production. The survey results indicate that to become more successful, these organizations need to invest in training and Lean-enabling IT solutions to make the use of Lean strategies more pervasive and less reliant on the skills of a few individuals.
 
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port
 
The Lean Strategies Benchmark Report
Recommendations for Action  Increase the frequency of continuous improvement events, increase the number of or-ganizations involved, and engage top management to promote the events and their success  Acquire methods and IT solutions that can help define and validate the business value of redesigned processes and track their business impact  Focus Lean techniques and IT solutions in manufacturing on achieving greater speed, reliability, and flexibility  Extend Lean programs beyond manufacturing and into the supplier, delivery, and selling processes
 
 All print and electronic rights are the property of Aberdeen Group © 2004.  ii  Aberdeen Group  
 
 
 
 
Table of Contents
The Lean Strategies Benchma ort
ExecutivSeu mma.r..y.................................................................i.  ......................... Key Businesals uVe Finndgi.s.....................................................i.  ................... Implicatioa n sd  Analsy..s.i........................................................i  ..................... Recommendatfi o rn As cotni......................................................ii.  ................... Chapter O  n Is e s : ues  aHtan.d.........................................................1.  .................... Why Lea.n..?.......................................................................1  .......................... Worth thJeo urne.y................................................................1.  ....................... Lean AdoptCiohna lleng.e..s......................................................2.  ................... Chapterw oT: Key Businesals uVe Finndgis..........................................4.  .............. Lean Econosm..i.c.................................................................4.  ....................... Kaizen, orWking Capiteald uRction, Le a lnu eV Chai..n.......................5.  ....... Winnersa kTeL eanB road ande eDp.............................................6.  ............... Chapter Th  r I ee m : plicatioa n sdA naylsis............................................8  ............... Where DoYeosu r OrganizatiSotna nd..?........................................8.  .............. Vision versus Doyepmlent Gap..............................................9.  ....................... Heavy Reliance on Giullr uLism” itW Leaanl aSbcilyi.t.......................1..0.  ..... Load Leveling Production Is the Mo sSto lCurtiitoicna lR IeTquireme1n1  t....... StreamliningV talhu e   Chain...................................................1..2  .................. Lean I TSolutionsa pRidly Mraitnug.............................................1..3.  ............. Chapter F : o  u R r ecommendaftioor nAsc otni........................................1..5.  ........... Staying GroundedL ewaitn hP ra c etis..........................................1..5  ............ Make Lean Paesri v .e............................................................1..6  ................... Getting the Mosotf  oMuat nuftaucrin..g.........................................1..6  ............ From Lean Manufact uLreinagn  atlVoueC hai.n...............................1...7  ........ The APCE Framewfoorrk  a Leanr aStteg..y...................................1..8.  .......... Featuredp oSnso.r.s..................................................................2..0  ....................... Sponsor Dcitroer.y....................................................................2..4  ....................... Author oPfrile..........................................................................2..5  ......................... Appendix R A e : search tMheodolo.g..y..............................................2..6  ...............
All print and electronic rights are the property of Aberdeen Group © 2004.  Aberdeen Group  
 
The Lean Strategies Benchmark Report
Appendix   R B e : lateAdb erdeen eRaersch anTodo l.s...............................2.9.  ........
 All print and electronic rights are the property of Aberdeen Group © 2004.  Aberdeen Group  
 
 
 
 
 
The Lean Strategies Benchma ort
Figures Figure 1: Breadth of Lean D eBplaosyedm eo n tLengItnhv o flvem.e..n..t.....2.  . Figure 2: Top Five Concerns/ChalTlehnatg ePso tentially  Represent a BarrAiedro tp o t in/Expansion of SLter a nt egi.e..s..................3.  ..... Figure 3: Top Five BusinFeascst ors for LAeadno pti.o..n..........................4.  ........ Figure 4: Top Five Lean-Eenda bBlusinessr aSttegi.e..s............................6.  ......... Figure 5: Corporate Performance versus Lean Organizational K.n..o..w..l.e6.  .dge Figure 6: Corporate Performance versus Lean Organizational Co.m...m..i7.  tmen Figure7: IT Importance in Reducing Expertise Required to Redesigno cPersse..s.............................................................1..1.  ....... ............ Figure 8: IT Reducing Experteiqsue irRed for Loadl-iLneg vPeroduc.t.i.o..n....1..2  Figure 9:  SITolutions CurreUnsteldy  to Support ILnietaiant iv..e.s..............1..3.  .. Figure 10: IT Solution Choicien  wtihteh Nex t  o1 2  4 oMnth.s...................1..4  ....
Tables Table 1T: heA berdeen Lean Stersa tCeogimpetitFirvae mew.o.r..k...............8.  ..... Table 2: Prtiiozreid APCE.............................................................1..8  ........ ...........
All print and electronic rights are the property of Aberdeen Group © 2004.  Aberdeen Group  
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