The Lean Extended Enterprise: Moving Beyond the Four Walls to Value Stream Excellence

THE LEAN EXTENDED ENTERPRISE ASSESSMENT PROCESS

Methodology and Definitions

The LEEAP is the formal performance measurement tool for the LEERM. The objective of this tool is to evaluate status and progress in migrating toward a Lean Extended Enterprise. A second objective is to provide a quantitative assessment of the organization's ability to execute, sustain, and realign itself for strategic improvement. The LEEAP consists of the following framework elements:

  • Categories: There are seven major evaluation areas in the Best Practices and Principles Panel of the LEERM:

    1. Leadership

    2. Customer and market focus

    3. Uniform improvement infrastructure

    4. Value stream processes

    5. Extended enterprise integration

    6. Organizational learning

    7. Performance measurement

  • Criteria: An expansion of the traditional five basic principles of lean into 42 distinct practices and principles of value stream excellence. There are 6 distinct practices and principles for each of the 7 categories, or 42 in total (refer to the Best Practices and Principles Panel in Figure 8.2).

  • Practice elements: The specific evaluation points within each practices and principles criterion.

  • Frequency score (F): A relative measure of the organization's sustainability and commitment on each of the practice elements (i.e., leadership, commitment, strategy).

  • Excellence score (E): A relative measure of how well the organization is capable of achieving results on each of the particular practice elements (i.e., execution, technical competence).

  • Strategic focus score (S): A measure of the organization's ability to detect a loss of focus and realign itself to achieve the desired strategic and operational results (i.e., measurement, alignment,...

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