A framework for System Excellence assessment of production systems, based on lean thinking, business excellence, and factory physics

Abstract

This article proposes a production system framework that synthesises lean production, business excellence, and factory physics. The framework, which draws on a deep state-of-the-art understanding, consists of a performance measurement system supporting the achievement of a target condition based on variability and lead time reduction, as well as approaches of continuous improvement. Based on four types of excellence, a System Excellence value is calculated, indicating the distance from a target condition and thus displaying relevant improvement potential. As a key result, the framework proposed provides a contribution to knowledge, as it combines the aforementioned schools of thought, resulting in a holistic framework for action. The measurement system offers a high level of robustness, as it draws on diverse data sources and reflects on the dynamic behaviour over time. It has been successfully implemented in automotive manufacturing plants worldwide, which may suggest considerable practical relevance. Another key result of this research is that through applying the framework, important bottom-line indicators, such as lead time, failure costs, or productivity, could be improved. As the plants are typical automotive industry high-volume plants, it is proposed that the solutions presented offer a suitable standard for this industry and type of plant.