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STAGE 0: Introduction to the Program
STAGE 1: STANDARDIZE
STAGE 2: TRANSFORM
STAGE 3: REFINE
STAGE 4: ENGINEER
STAGE 5: AWAKEN
STAGE 6: MAINTAIN

1.4 Estimate Quantifiable Benefits [STREAM*]

Topic
Materials

The kinds of benefits normally associated with a Lean project include reduced cycle time, reduced inventory, improved productivity, reduced floor space, reduced scrap and rework, and reduced overtime. It is always preferable to express these anticipated benefits in the common denominator of dollars, although this is sometimes difficult. If the benefits of a flow project cannot be quantified, or if the benefits are modest, this is a red flag to warn you that your time would be better spent elsewhere.

Use the Lean Benefits Calculator to estimate the potential currency benefits of this project. Instructions on how to use the Calculator are included in the tool, and you can also download a data entry worksheet. Click on the “Materials” tab above to get access to the Lean Benefits Calculator.

Establish key performance issues to be addressed in this project: additional capacity, faster cycle times, greater flexibility, better inventory turns, higher productivity, and additional floor space. Ensure that the project goals align with the plant and corporation’s goals.

OKRs
Objective: Validate the Return on Investment (ROI) expected by estimating the dollar benefits in a variety of benefit categories.
Key Result: Upload the benefits results as a PDF document to the Lean Design Studio.


Click on the link below to launch the Lean Benefits Calculator. Click through each of the tabs and set performance improvement goals for the various categories. Each tab includes an audio instruction on what is expected. At the end of this project you'll compare actual results to the benefits calculated here.

The results of the Lean Benefits Calculator will be emailed to an email address that you specify. You can then save the email as a PDF in order to upload it back to this platform.

https://www.leanbenefitscalculator.com