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Metrics and Performance Measurement System for the Lean ...

Metrics and Performance Measurement System for the lean Enterprise Professor Deborah Nightingale October 24,2005 Overview Metrics and Performance Measurement Why measure? What is Performance measure? What are good Metrics ? Performance Measurement and lean Transformation Current practices and Performance Measurement frameworks Performance Measurement System for the lean enterprise / : Integrating the lean Enterprise Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2 Why Measure? Performance control systems can serve two purposes, to measure and to motivate. - H. Mintzberg, The Structure of Organizations, 1979 The firm becomes what it measures - Hauser and Katz, You are What You Measure, 2002 Metrics serve multiple purposes! Strategy Feed Decision Back Making Measures Outcomes Actions Robert Nixon (1990) / : Integrating the lean Enterprise Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 3 What is Performance Measurement ?

Oct 24, 2005 · Manufacturing P u r c h a s i n g R & D Value Delivery Stakeholder Objectives Customer Suppliers Employees ... Processes Sales C U S T O M E R Centers of Excellence CEO Executive board Engineering Manufact uring R&D Process Enterprise Lean Enterprise Source: Vikram Mahidhar. Metrics Challenge Today ... ORPIC* = Operational Readiness per ...

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