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Lean Assessment : Methodology
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How
Howable
ableisisyour
yourSupply
SupplyChain?
Chain?
Are
Areyou
youaware
awareof ofwhat
whatitittakes
takesto
tobe
becounted
countedamongst
amongstthe
thebest?
best?
Do
Doyou
youknow
knowhow
howGlobal
GlobalInvestors
Investorswould
wouldview
viewyou?
you?
Highlights
1. Align Manufacturing & Supply
Chain along medium and long
term business objectives
2. Make Supply Chain &
Manufacturing your competitive
weapon
3. Global Model for assessing the
Supply Chain capability
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The awards model judges on 14 factors associated with manufacturing excellence and is scored on
maximum of 1200 points (12 factors are scored, other two are considered during awardees selection)
• Layout and MHS (100 pts)
• Focus on Customers (100 pts)
• Orderliness, Safety & Environment (100 pts)
• Internal Competence (100 pts)
• Visual Management (100 pts)
• Quality Systems (100 pts)
• Scheduling systems (100 pts)
• Supply Chain (100 pts)
• Inventory Management (100 pts)
• Asset care (100 pts)
• Operational Flexibility (100 pts)
• Innovation Adaptation (100 pts)
• Process complexity
• Leadership Commitment
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..and each of the 240 checkpoints are carefully pre-graded, so that the grades assigned are
directly indicative of the facility’s achievement…. on a look at – look for basis
World Class
World Class
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Facilities are assessed and scored without any bias and results have been presented
accordingly Focus on Customers
100.0
Orderliness,
Innovation Adaptation 83.3 Safety & Environment
80.0
Facility
68.0
60.0
69.1 Score
Quality Systems Visual Management
60.1 40.0
70.0
Previous
20.0 IMEA
71.0 Averages
Supply Chain 0.0 Scheduling Systems
71.0
World
72.7
63.4
Class
Layout &
Operational Flexibility
Material Handling Systems
69.0 71.1
69.9
Asset Care Inventory Management
Internal Competence
Sample Facility Score Previous IMEA Average World Class
Thus capturing both, the Extent and
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Balance of Growth!!
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Assessment Criterion…..
1. Layout & MHS
Systematic efforts to minimize/eliminate non value added activities
Appropriateness of material handling options
Product flow and its suitability (with respect to least distance criterion)
Space utilization
Containerization and palletisation, etc
2. Focus on Customers
Availability of customer satisfaction ratings
Definition of the Internal and the External customer
Quality certification and ratings. Its application to improve processes
New product introduction
Knowledge of customer requirements
Market share etc
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Assessment Criterion…..contd.
3. Orderliness, Safety & Environment
Cleanliness of the facility
Systems to ensure orderliness and aesthetics, colour coding, etc
Records pertaining to safety & environmental upkeep
Performance on hygiene factors
Smoothness of material flow
Order and Countability of Inventory etc
4. Internal Competence
Organizational type and compatibility for successful application of teamwork concepts
Compensation of workers, job security, turnover rates
Investment in worker training
Communication and recognition environment
Teams problem solving capability and documentation etc
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Assessment Criterion…..contd.
5. Visual Management
Visibility of mission, vision, strategy, policy statements
Labeling of products, areas and equipment/tooling
Display of performance (man and machine) charts
Countability of inventory
Introduction of plant wide movements that ensure visible controls etc
6. Quality Systems
Quality certification
Process capability Indices
Efforts to reduce process variations
Impartment of training on quality (including SPC) to workers (besides staff)
Understanding and tracking of true cost of poor quality
Standardization of process parameters etc
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Assessment Criterion…..contd.
7. Scheduling Systems
Make- to- order or Make-to-Stock? and its appropriateness
Smoothness of flow and presence of bottlenecks
On time delivery fill rates. Flow efficiencies.
Existence of Pull type systems.
Space dedicated to material storage and handling
Identification of materials etc
8. Supply Chain
Supplier certification process
Supplier appraisal and feedback process
Average number of suppliers
Zero Inspection and/or DOL suppliers
Orientation of sourcing policies and accent on annual cost reductions etc
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Assessment Criterion…..contd.
9. Inventory Management
Levels of RW, WIP & FG inventory levels
Inventory turnover (compared to Industry average)
Number of inventory storage areas, incl line side storage, FIFO
Countability of Inventory
WIP movement trigger etc
10. Asset Care
Preventive maintenance versus Breakdown maintenance
Extent of machine availability and implications of reasons for machine non-availability
OEE
Operator routine maintenance, set uptimes, quality factors
Equipment Improvement policies etc
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Assessment Criterion…..contd.
11. Operational Flexibility
Degree of difficulty in altering product mix or revising production rates
Set ups and changeover times and Operator training towards these.
Projects towards changeover time reduction.
Extent of automation and computerization
Ability to control variations and to smoothen demand etc
12. Innovation Adaptation
Protocol for incorporation of newer technology into existing equipment
Schedule for imparting knowledge of newer technology to existing people
Is the system of monitoring capacity utilization dynamic
System for developing their own novel cleaning protocols that achieve cleaning validation
effectively
Protocol for measuring monitoring the gestation for a lab process into a successful commercial
manufacturing process etc
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Assessment Criterion…..contd.
13. Process Complexity
Type of configuration
Variety of products & volume
Capital Investment & variable cost
Flexibility
Labor content & skill etc
14. Leadership Commitment
Organizational structure and governance systems
A systematized process for planning and deploying of objectives/vision into implementable
action plans
Cultural allergy to non value added activities!
Tolerance of systems for absorptions of learning losses
Openness of management towards constructive criticism/feedback
Recognition and awards policies, if any
Reviews of leadership systems within the organization
Any acts of community responsibility etc
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Guidelines for Analyzing Facility Scores..
Total Assessed Implied Comments of the Assessment
Score for a Facility
981 to 1200 pts organization. Systematized focus on identifying and eliminating non value added
Lean organization. added activities.
Systematized sustenance of leanness is achieved. Focus on ensuring Continuous Improvement
766 to 980 pts An exciting and popular movement within the organization. Significant
Significant deployment of waste prevention
projects. Focus on attaining Reliability
546 to 765 pts A good beginning in achieving lean status. Ideas exists, but not systematized.
Still dependent on individual initiative
Upto 545 pts No significant progress in the race to become lean. Long way to go and performance levels
levels are not
reliable
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The Assessment Process will result in many soft benefits…
(besides competing for the award)
A Closing feedback session at the end of the site assessment, that will highlight
Observations on facilities and specific areas for improvements that are key to the facility
becoming world class.
Industry averages and comparative averages/matrices obtained and observed during the
assessment process will also be shared through the report.
Chronological trends will be reported, if significant.
The scores shall find a place in the ‘Manufacturing Health Index’ portal to enable
global players to seek inputs from the facility regarding the maturity of operations.
The site assessment report will be prepared and submitted only on
on specific request.
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Site Visit
A sharply focused exercise spanning over 2-3 days and conducted by 2 members of the assessment team
Submission of
Documents/ Reports Reqd
1. Analysis will be based on Quantifiable facts,
Managerial Interviews and Judgmental
Observations (made by the awards assessment team)
2. Reporting will be in the form of
Site Visit
• Radar charts that will attempt to quantify
observations on all assessable parameters
and
Meetings with Key Plant • Comments on major processes and their
Personnel shortcomings. Gaps that need to be addressed
so as to make the plant Lean, Flexible and
World class will be identified
Review/ Studies
(if found necessary)
Review/ Studies
(if found necessary)
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Confidentiality
All information (either shared or made known to us on account of the site visit) and report
(individual assessment reports of facilities) will be kept strictly confidential.
However, data and information obtained during the course of this event, will be compiled
into meaningful reports that will be industry/nation specific (not company specific).
The permission of the facility shall be sought prior to uploading their performance scores
on the MHI portal.
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