Business Basics
Home Page

Who is Bill Gaw?
And why should we
listen to him?


lean manufacturing principles and techniques training

4- training tools that make cost-effective,
DIY, company training a reality?

Lean Manufacturing Transformation

Want to add pizzazz to your in-house Manufacturing Training Program.
Lean Manufacturing Simulation Game

Supply Chain Implementation
Part 6 of 6

privacy policy

To review our training
packages, simply click
on any of the links below:

Training Materials and Options

Lean Manufacturing Solutions

Lean Manufacturing Toolbox

Performance Measurement Training

Poka-Yoke and
Process Improvement Training

Lean Manufacturing -
Small and Medium
Sized Businesses

Supply Chain
Inventory Management

Lean Six Sigma

Strategic Planning Training

World Class Manufacturing

Continuous Process Improvement

Kaizen Training

Kaizen Blitz Event


Best-In-Class Manufacturers

Best of Gaw Lean Management Articles

Golf Training Program


What makes a good measurement of performance? Did your boss tell you you're doing a good job? Did you get your annual raise? A true performance measurement must be something tangible and be quantifiable. The following are the key elements of a meaningful perfor­mance measurement.

1.  What are the objectives that should be measured? For example, raise inventory turns from 4 to 12.

2.     Are the tools and processes in place to meet the ob­
jectives? For example, an ERP has been installed to
improve resource management.

3.     What is the timeline in which the objective must be
completed? For example, inventory turns are to meet
the new levels within 6 months.

4.     What is the current measurement of the current processes? For example, inventory turns are at 4.

5.  How will the objective be measured? For example, we will use the inventory summary report from the ERP and the COGS from the sales summary report to calculate turns.

Once you can answer all five questions, then you can measure the success of the implementation. One of the six basic background elements was the goals and objec­tives for the implementation. Ensure the goals and ob­jectives set can be measured by the criteria above.


No one will ever have the same level of visual clarity and enthusiasm towards the supply chain vision than the owner of that vision. How the tactical and logistical pro­cesses are defined, documented, communicated, and executed will be integral to a successful implementation of the project. In order to ensure the vision can be trans­lated successfully into new processes, a letter of under­standing should be written to communicate a common, consistent message to all internal and external partners. A statement of work should follow to document the tactical processes and partners responsible for execution. Then, using appropriate performance measurements to confirm the project is meeting the intended goals and objectives supporting the vision, a successful implemen­tation will follow. The amount of time spent planning and organizing implementation will have a direct result on the success of your partners by keeping them focused on execution. Maybe there is still hope yet for that VP position.

For balance of this article, click on the below link:

Lean Manufacturing Articles and click on Series 13


To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course. 


First Name:
Your E-Mail:

 Your personal information will never 
be disclosed to any third party.

privacy policy

Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC

"Back to Basics" Training for anyone ... anywhere ... anytime

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2001-2009 Business Basics, LLC