Assessment of Operational Excellence and Factory

Performance

This assessment form can be used to measure Operational Excellence

of a factory or Product Division. The assessment matrix goes above
and beyond the typical lean manufacturing processes and includes
strategic planning and customer service.

Many of the metrics used - Inventory levels, quality levels, work flow,
standard work usage, etc.. are good measures of lean performance.

Note: Just measuring output parameters: speed or inventory is not

effective. We should also measure process improvements is equally
important: work flow, use of standard work, etc..

The matrix is extracted from the text: Winning With Operational Excellence
ence and Factory

Operational Excellence
ent matrix goes above
ocesses and includes

quality levels, work flow,

of lean performance.

ed or inventory is not
mprovements is equally
etc..

th Operational Excellence
 Table A-1: Assessment of Operational Assessment and Scoring (Page 1 of 3)
Excellence and Factory Performance
Item Reviewed 1:Unacceptable 2: Minimum 3: Good 4: Very Good
requirement
1 Customer metrics and performance
a Customer complaints, CARs, and issues are Average time AT <10 days AT <5 days AT <2 days
registered and resolved quickly. (AT) >10 days

b How is delivery to customers? Are you meeting <95% On time >95% On time >98% On time 100% On time
commitments? Other customer metrics should be
in the KPIs, next item.

2 Factory metrics (KPIs) and performance

a Are there robust metrics (KPIs) to measure None Some KPI or Set of metrics Set of metrics
factory performance? Key metrics must include: metrics are covering quality, covering quality,
*Product quality and product yields available. yields, cost, yields, cost,
*Cost management & cost reduction delivery. delivery,
*Delivery to customers education.
*Education/training

b The metrics reflect a direction and philosophy of No KPI or KPIs exist, but KPIs have Improvements
continuous improvement - based on past and metrics. no year-to-year improved in achieved in all
future targets. This requires a past and current improvements. >50% of metrics metrics
target review.

c There is good performance to above KPI or None Missing many Missing a few Meeting all
metrics targets targets targets

d The operation is working on continuous No effort. Some reviews, Regular Regular

improvement and reduction of process variability: with marginal reviews, with reviews, with
For example incoming supplier defects, batch gains. good progress good progress
production, weak TPM, long machine setup times, in a few areas. in listed areas.
high WIP, incoming vendor defects, unbalanced
production lines, excessive overtime.

3 The organized workplace - 5S system

a Is the workplace clean & spotless, with no clutter, Unacceptable Some effort, Good effort, can Tip-top condition
dirt or debris? decent gains. do better
b Is the workplace organized: Workstations, Unacceptable Disorganized, Good layout, Well-organized
equipment, and tools are accessible to operators, work area needs much but cluttered, workplace.
with no clutter and unnecessary items lying work. needs
around. improvement.

c Workplace is well laid out, workflow is streamlined Disorganized Workplace Good layout; Very good
and efficient; areas are marked with good workplace. layout is some layout; no
signage; standard work instructions are visible Needs major mediocre, needs congestion, issues at all.
and properly located; the layout supports kanban. revamp. improvement. minor issues.

4 Standard work
a Standard work instructions displayed at all None visible Poor displays or Displays in Complete.
workstations. Either paper documentation or via missing in most most assy. Display at all
monitors. assy. lines. lines, missing in workstations.
some.
 Table A-2: Assessment of Operational Assessment and Scoring (Page 2 of 3)
Excellence and Factory Performance
Item Reviewed 1:Unacceptable 2: Minimum 3: Good 4: Very Good
requirement

4 Standard work (Continued)

b Standard work instructions are complete and No checks or Many errors or Mostly updated Extensive
accurate per actual work practice. Urgent changes audits obsolete and accurate. audits: 100%
require temporary documentation or red-lining by standards. Some red-lined accurate.
engineers to ensure operators are updated on documents, not
standard work. Standards are reviewed for updated.
accuracy via a QA audit.

c Work processes are continuously improved as No recorded Some A reasonable A planned

evident in improved and re-documented standard effort. Improvements effort to improve. effort with
work; check per engineering records. continuous
improvement.

5 Identification and reduction of inventory waste

a There is minimum work-in-process (WIP) inventory >48 hrs <48 hrs <24 hrs <12 hrs
in production; Measured in hours of WIP

b There is a minimum of inventory in the warehouse; <6 turns 6 to 12 turns 13 to 30 turns >30 turns
Measured in turns:
Inventory turns = Rolling 12 Month Cost of Goods
Current Inventory
More waste is identified below in other sections.

6 Work Flow
a How is the factory layout determined? Is the All equipment Mostly Mostly product Fully product
current layout equipment based or product based? based equipment based based + some based.
+ some product equipment based
based
b Takt & Cycle time is managed well and lines are Operation is run Bottlenecks are Some Smooth flow in
balanced and flowing smoothly. There are no choke in batch common in cells bottlenecks, both cells and
points or bottlenecks in work cells or assembly production or assembly mostly smooth assy. lines.
lines. mode. lines. flow
c Production is run in JIT (Just-in-time) mode, with a None JIT and Kanban JIT and Kanban Fully JIT and
Kanban material delivery system. Note: Refer to on >50% of on >80% of Kanban
results of items 5 (WIP) and 3 (5S system) to production. production.
validate effectiveness of JIT.

d Is there a continuous flow on the production line? Completely Batch plus flow Some batch Very smooth
For both cell manufacturing and linear paced lines, batch production, flow
expect smooth flows with little batch production.. mostly flow

7 Machine Management & TPM

a There is a strong equipment maintenance program; No TPM effort Basic TPM TPM program Strong,
hence no equipment breakdown impacting program, weak exists but often effective
production flow or causing downtime. implementation, misses schedule. program. No
frequent Little downtime. production
breakdowns. downtime.

b Equipment availability is good: Not measured Uptime over High OEE 80- OEE >90%;
Uptime or OEE is measured and targets met. 90%; No OEE; 90% range; meet Meet & exceed
Process capability, Cpk targets, achieved for all Cpk targets for Cpk targets for Cpk meets
equipment. some equipment most equipment. targets for most
only. equip.
 Table A-3: Assessment of Operational Assessment and Scoring (Page 3 of 3)
Excellence and Factory Performance
Item Reviewed 1:Unacceptable 2: Minimum 3: Good 4: Very Good
requirement
7 Machine Management & TPM (Continued)

c Does equipment produce defective parts due to poor Not measured Often Sometimes Never
maintenance?
d SMED: There is a strong effort to reduce equipment No effort. SMED in <30 SMED in 10-15 SMED in 1 to 5
setup times for presses, molds, SMT, testers, line min. for some min. range, for min. range for
setups, etc. Check the data and the effort to reduce equipment and most equipment most equip. and
changeover times for production lines and equipment line setup. and line setup. <10 min for
over the years. balance.

8 Quality:
a Good supplier quality – dock to stock inventory due to None A few incoming Most incoming All incoming
supplier certification and management. parts, >50% parts, >90%. parts
b What are the first-pass product assembly yields? Is <90% 90-95% range for >95% for most >99% for most,
the production defect rate high? Are there pallets and most products. products. and >95% for
shelves of product awaiting rework? balance.

c There are extensive poka-yoke and jidoka systems in None Done on a few Done on >75% Implemented on
place on the factory floor for critical processes. lines of lines all lines
d Operation runs smoothly with no fire-fighting. Check Operation is in Mostly fire Strong use of Operation is
for 3 modes: Fire-Fighting mode; Systematic Problem fire-fighting fighting. PDCA: beyond PDCA:
Solving Mode; Predict & Prevent mode. mode, yields are PDCA problem Systematic Predict &
This measure is an indicator of effective management, low solving used in Problem prevent mode
strong engineers, and good problem solving skills. some areas Solving Mode

f There is a good improvement process in the None Some in several Evident in most Extensive in all
operation: Improvements are measurable in in areas areas areas and
processes, cycle times, quality, product warranty. measurable.

9 Employee/Partner Participation and Development

a Established and effective skills-training program for None Poor Well Well
operators. Routine training for all operators, well documentation documented, documented,
documented; training effectiveness is measured. and sporadic but often with good
implementation. missing implementation.
schedule

b Schedule for Education and Training for professional None Poor Well Well
staff: Including PDCA, 7 tools, DOE/Six Sigma, poka documentation documented, documented,
yoke, and other training. and sporadic but often with good
implementation. missing implementation.
schedule

c Partners and suppliers: 1) Have been trained in None Success in 1 Success in 2 Success in all 3
company needs and requirements; 2) Help to improve area areas areas
product quality and delivery; 3) Participate in kanban
delivery.

10 Strategic direction of operation & factory

a Senior management has a strategic plan for the next No plan These are some Some planning Strong, detailed,
few years to ensure competitiveness of the company. ideas which are with data and data-driven
The plan covers: revenue growth, operational needs, executed execution. plan, well
quality and productivity improvements, cost structure randomly. executed.
improvement, people management. There is visible
and measureable progress in this plan.