Criteria for A Lean Organisation: Development of A Lean Assessment Tool

Abstract

Lean principles have long been recognised as a competitive advantage. Although there are several measures for various aspects of lean production in the literature, there is no comprehensive measure for overall lean implementation in business firms. An appropriate measurement tool is needed to assess the effectiveness and efficiency of the lean implementation throughout the entire organisation. Based on lean research, a comprehensive tool called the leanness assessment tool (LAT) is developed, using both quantitative (directly measurable and objective) and qualitative (perceptions of individuals) approaches to assess lean implementation. The LAT measures leanness using eight quantitative performance dimensions: time effectiveness, quality, process, cost, human resources, delivery, customer and inventory. The LAT also uses five qualitative performance dimensions: quality, process, customer, human resources and delivery, with 51 evaluation items. The fuzzy method allows managers to identify improvement needs in lean implementation, and the use of radar charts allows an immediate, comprehensive view of strong areas and those needing improvement. Practical uses of the LAT are discussed in the conclusion, along with possible limitations.