The measurements presented as lean Six Sigma, while typically applied in waste elimination and process controls, apply to any strategy and organization striving to achieve operational excellence. The list is not all-inclusive, but is geared to measurements focused on productivity and profitability. Each metric is described as how to calculate it and where it should be applied.

Cycle Time/Cycle Time Efficiency Cycle time for an operation is the amount of time, including lead time, required to complete one full complete cycle. Processes contain multiple operations. Cycle time represents the amount of time to complete a full cycle for the overall process. A complete cycle contains time waiting, or lead time, and actual value-added time, which add up to total cycle time. Cycle efficiency can be defined as the ratio or percentage of added-value time divided by lead time. This metric can be determined for all processes throughout the organization and lean efforts to improve the efficiency can be monitored. The amount of cycle time is also frequently tracked using different charts and dashboards. Cycle time is a critical measurement for lean Six Sigma initiatives and the attainment of operational excellence.

Setup Time This measurement is determined as the average time required for a specific machine, resource, work center, or line to convert from the production of the last good unit of batch A to the first good piece of batch B. It is critical to record, chart, and communicate the time required to...