Manufacturers Going 'Lean' Are Exceeding Shareholder Expectations, Finds AberdeenGroup Benchmark
AberdeenGroup - March 28, 2006
Three out of four manufacturers deploying "Lean" techniques across manufacturing and adopting a culture of "Lean" throughout their organizations are realizing larger benefits sooner than anticipated, according to a benchmark study by AberdeenGroup. Simultaneously, by "thinking Lean", market leaders are building the organizational competence that will help sustain market position and performance over the long term.
According to AberdeenGroup, Lean manufacturing processes have revolutionized the way many leading enterprises deliver products to their customers and manage their suppliers. Consequently, the use of Lean techniques has expanded beyond the automotive industry into aerospace, consumer products, and other industries. However, there is a large performance gap between companies simply using Lean techniques on the shop floor versus those that have built a culture based on Lean thinking.
Technology solutions are pivotal in enabling the capture of value stream operational processes, by allowing manufacturers to scale Lean operations across the supply chain and around the world. "Lean ERP, Specialty/MES and homegrown solutions are providing a solid foundation from which manufacturers are defining value stream processes and activities that extend from the customer, through production, and back to the supplier. Emerging technology solutions enable the capture of value stream operating models, scheduling and tracking critical resources, and the ability to promote continuous improvement programs," said Jane Biddle, Vice President of Global Manufacturing Research at Aberdeen, author of the report.
According to the AberdeenGroup benchmark study, 75% of best-in-class Lean companies are meeting or exceeding their Lean program expectations for:
Reduction of inventory and assets
Manufacturing and design cost reductions
Improved manufacturing and supply chain flexibility
Improved product quality
Improved customer service
About the market research study
The AberdeenGroup report, "The Lean Benchmark Report: Closing the Reality Gap", examines that gap and isolates the three common characteristics of best-in-class companies that have achieved operational excellence through deploying a Lean strategy. It then describes the strategic actions these companies take to achieve a Lean culture, the basics of Lean and how leading companies have mastered them, and technologies that enable Lean. It also discusses the dividends best-in-class Lean companies receive, such as improvements in customer services and flexibility -- and how they outperform the competition by pushing Lean processes beyond manufacturing and measuring them daily or more frequently. Finally, the study recommends actions for best-in-class, average, and laggard companies to take to improve their Lean performance.
The study answers such questions as: What is driving manufacturers today to adopt Lean? What are their business needs and expectations? How are the best-in-class implementing Lean? What are their critical success factors and how are these being measured? What tools, techniques, and technology solutions are leaders using to deploy and scale their Lean operations?
The Lean study is available for download from the AberdeenGroup Web site at no charge.
