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The management of Apex Company has decided to adopt lean management. They are reorganizing production operations into order fulfillment value streams. Priscilla Pinnacle, COO of Apex Company wants to create a box score to evaluate the performance of each value stream, but she’s not sure which measures to include. She has asked you to recommend measures for inclusion in the value stream. She wants the box score to include information on the following dimensions of value stream performance:
1. Production flow through the value stream.
2. Product quality.
3. Ability to meet customer delivery requirements.
4. Overall productivity of the value stream.
5. Overall efficiency of the value stream.
Write a memo to Priscilla Pinnacle recommending one performance measure for each of the five dimensions. Briefly explain how each measure you recommend can be used to track performance and encourage continuous improvement in the value stream on the given dimension.
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