Quantifying Results & Improvements

[AuburnIE]

We are in the process of converting our plant and processes to lean manufacturing. We have Kaizen events and other initiatives going on simultaneously. I am having problems quantifying some of the results. Management wants financial benefits to the bottom line. But, some of the improvements are visual, ergo, or just morale improvements. Any tips on how to quantify such improvements or any suggested performance measures?

Thanks,
AuburnIE

 

[PSE]

Have you the capability of looking at some historical data on the parameters you are wanting to measure? If so, you could do a before and after comparison using the same metrics. The ones you mention are going to be a bit difficult to quantify. Can you look at inventory turns (how long do parts sit), inventory accuracy, absenteeism changes, injury claim frequency changes? These you can quantify in terms of lowered inventory costs, lost work days, and medical costs. Floor space is also a commodity with value, check to see how much you have freed up. Check to see if internal rework goes down (change in product yield) and if customer complaints go down (did they receive the right thing(s) at the right time and did it work).

Hope some of these help.

Regards,