Develop Performance Metrics

Performance metrics are used to determine and quantity improvement in processes. To develop performance metrics, it is important to collect data pertaining to critical work processes, understand the desired results and the development of realistic measurements to be used to quantify the process improvements. The goal of lean is to help in comparing performance levels with the benchmarks or established standards. In order to successfully develop project metric, it is it advisable to first define the project metrics. These include the goals, objectives, and project benchmarks. For example, if the process is to produce four inch rods. The upper limits and lower limit must be set probably 4m plus or minus 0.5m. Any deviation bellows 3.5m or beyond 4.5metres shall be considered out of control (Nicoletti, 2013). Process should always be within control. Collecting data is mainly to help in quantifying process improvement and not reduce products variability. The most commonly used metrics include speed, time, quality, quantity. In lean, both primary and secondary metrics must be defined.

The primary metrics are used to measure and conjure the benchmark level ad improvement level. The benchmarked level is the target level. Primary metrics include time metrics such as Lead-time, processing time or Value added time (Found & Harrison, 2012). Costs metrics include total process cost, Cost per transaction, Cost savings and labor costs Finally, Quality metrics such as Customer satisfaction, Defect rate, and Rework time are