performance

🚦 The First Three Metrics to Watch When Starting a Lean Initiative

Simple Signals That Drive Early Wins

When companies start a Lean initiative, there’s often a rush to build big dashboards and deploy dozens of KPIs. But complexity kills momentum.


The most successful Lean rollouts?
They start small β€” tracking just a few high-impact metrics that reveal process health, waste, and flow.


In this post, we’ll break down the first three metrics your team should watch to gain traction, prove value, and build team buy-in β€” without slowing things down.



🏁 Why β€œLess is More” at the Start of Lean

Early-stage Lean is about:

  • Eliminating obvious waste
  • Creating visual flow
  • Building operator engagement
  • Proving the concept


But too many KPIs can:

  • Confuse teams
  • Create data overload
  • Shift focus away from action


Start with metrics that are:
βœ… Easy to gather
βœ… Tied to daily work
βœ… Clearly tied to improvement goals



πŸ“ Metric #1: First Pass Yield (FPY)

What It Is:
The % of units that pass through a process without rework, scrap, or defects.

Why It Matters:
It’s the clearest indicator of process stability β€” and a direct link to customer satisfaction and cost.

How to Measure:
FPY = (Good Units / Total Units Processed) Γ— 100


πŸ’‘ Tip: Track FPY by station, shift, or product line for clarity.


What It Tells You:

  • Are your processes built to succeed the first time?
  • Where are your hidden costs coming from?
  • How much work is wasted downstream?


πŸ› οΈ Use it to trigger:

  • Quick Kaizen events
  • Targeted operator training
  • Visual defect boards


⏱️ Metric #2: Cycle Time (vs. Takt Time)

What It Is:
Cycle Time = Actual time to complete one unit
Takt Time = Time available / customer demand

Why It Matters:
Comparing these two tells you:

  • Can we meet demand without overtime?
  • Where are our bottlenecks?
  • Which steps need redesign?


πŸ’¬ Example: A team found that welding was consistently over takt time, while packaging had a 2x buffer. They rebalanced workstations and cut labor waste by 23%.


How to Track It:

  • Start with stopwatch observations
  • Build time logs into travelers
  • Use barcodes or scan sheets if possible


🧠 Don’t overthink it β€” just measure 10 units, and take the average.



πŸ“¦ Metric #3: WIP (Work in Process)

What It Is:
The number of units waiting between stations.

Why It Matters:
High WIP = high lead time, hidden defects, and unbalanced flow.


WIP shows:

  • Where work is piling up
  • Where processes are starved
  • Where your Lean map is broken


πŸ“Έ Use simple visual tools:

  • Kanban cards
  • WIP bins
  • WIP level boards


πŸ’‘ Even taking a daily photo of each station’s WIP helps teams see the waste.



πŸ”„ Bonus: How to Use These Metrics Together

  1. FPY drops β†’ Check which process step has high rework
  2. Cycle time exceeds takt β†’ Look at WIP upstream
  3. High WIP but stable cycle time? β†’ Misaligned scheduling or inspection delay

These metrics form a Lean feedback loop: detect β†’ discuss β†’ improve.


🧠 Tip: Don’t Make Metrics a Manager-Only Tool

Lean fails when operators see metrics as top-down reporting.

Fix that by:

  • Posting charts on the floor
  • Involving teams in measuring
  • Making changes visible and immediate


πŸ’¬ Case Snapshot: A facility used colored magnets on whiteboards to track FPY and WIP daily. After 3 weeks, operators proposed layout changes that boosted throughput by 18%.



βœ… Summary: Let Your Metrics Lead You

You don’t need a 20-metric dashboard to start Lean.

Begin with:

  • 🟒 First Pass Yield: Are we doing it right the first time?
  • 🟑 Cycle Time vs. Takt Time: Are we in rhythm with demand?
  • πŸ”΄ WIP: Where is the work getting stuck?


These metrics are more than numbers β€” they’re signals that help your team think better, work smarter, and improve together.



πŸ“£ Ready to Launch Lean the Smart Way?

I help companies start Lean with tools that work β€” not theory.
From metric design to Kaizen leadership, I’ll help your team make flow visible, fix faster, and improve sustainably.

πŸ“§ Email: eduardo.galindez@qmsoutsourcing.com
πŸ“… Contact: qmsoutsourcing.com/contact-us



#LeanManufacturing #ProcessImprovement #FirstPassYield #CycleTime #TaktTime #WIP #OperationalExcellence #QMS

Eduardo Galindez Avatar

About the author