Research indicates Lean leads to best manufacturing

A recently released research report from Aberdeen Group revealed that best-in-class manufacturers realize 21% more on-time deliveries, have a 37% higher level of OEE and their total inventory costs are 83% lower when compared to laggard manufacturers.
By Plant Engineering Staff April 15, 2008

A recently released research report from Aberdeen Group revealed that best-in-class manufacturers realize 21% more on-time deliveries, have a 37% higher level of OEE and their total inventory costs are 83% lower when compared to laggard manufacturers. The findings resulted from the analysis of more than 300 enterprises.

Putting the findings in context, Matthew Littlefield, a research analyst with Aberdeen’s Global Manufacturing Practice , said, “Enterprises are continually faced with the pressure to reduce operating costs. Our analysis has shown that in response, best-in-class enterprises are collaboratively sharing best practices across the enterprise and adopting an industry-specific approach to Lean.”

The research offers the following observations:

  • Best-in-class enterprises are 40% more likely to leverage external domain experts for Lean initiatives, and of the best-in-class currently leveraging consultants, 93% leverage consultants with industry-specific experience implementing Lean

  • Performance management is a key capability that differentiates best-in-class performance. The best-in-class are more likely to provide role-based real-time KPIs, link operational KPIs with financials and leverage manufacturing analytics to provide actionable intelligence

  • Technology is the final differentiator of best-in-class performance. The best-in-class are integrating multiple technology solutions to extend the functionality of traditional enterprise applications supporting Lean. These technologies include simulation, enterprise asset management, manufacturing intelligence, business intelligence, advanced planning and scheduling and Lean software solutions.