LEAN ACCOUNTING BEST PRACTICES FOR SUSTAINABLE INTEGRATIONE phần 4 ppsx

PART II

PERFORMANCE MANAGEMENT

ch04_4772.qxd 2/2/07 3:39 PM Page 67

ch04_4772.qxd 2/2/07 3:39 PM Page 68

4

CREATING A NEW FRAMEWORK FOR

PERFORMANCE MEASUREMENT OF

LEAN SYSTEMS

BRUCE BAGGALEY

Successful lean manufacturing implementations often fail over the long

term. Initial reductions in lead time and inventory levels achieved in the

early days of the lean effort have evaporated on return visits three years

later. A common theme in these situations is that companies continue to

measure and evaluate their operations based on traditional assumptions of

what constitutes value. In short, lean manufacturing cannot be sustained

over the longer term without replacing these traditional measurements.

This chapter examines the problems that traditional measures of value im￾pose on performance management in a lean enterprise. It explores the appli￾cation of systems thinking in the development of performance measures for

the lean company, and it describes the characteristics of measures that support

lean. With this as background, it develops a set of measures that embody these

characteristics. The chapter concludes with a method that companies ready to

adopt lean principles can use to develop a set of performance measures that

sustain lean enterprises.

Companies increasingly apply the frameworks developed by system

thinkers such as Margaret Wheatley.1 These new frameworks force companies

to rethink the assumptions on which their traditional measures have been based.

At the same time, systems thinking frameworks point to new opportunities for

69

ch04_4772.qxd 2/2/07 3:39 PM Page 69