1. Have we reduced our total order-to-delivery cycle time by at least 50% over the past three years?
2. Do 99% or more of our customers' orders arrive by the time promised?
3. Have total inventories decreased by at least 50% over the past three years?
4. Has our supplier base been reduced by at least 65% during the past five years?
5. Have our supplier lead times been reduced by at least 50% over the past three years?
6. Have scrap, rework, and warranty costs been reduced by at least 50% over the past three years?
7. Have our labor and manufacturing overhead costs declined by 20% or more over the past five years?
8. Have we reduced our cost of quality by at least 33% over the past three years?
9. Have we reduced material costs by at least 10% over the past three years?
10. Have we cut our product development and introduction cycle by at least 50% in the last five years?
Now, count the number of "Yes" answers to grade your company on its performance improvement gains.
9 or 10 - You are already among the elite class of top-performing manufacturing companies. At the same time you cannot rest on your laurels. You need to keep performance improvement momentum in high gear, to stave off competitors who may catch up with you.
7 or 8 - You are in the high-performance group and are probably out-performing most, if not all, or your competitors. Still, there is a risk that you can fall behind by failing to move quickly to address the two or three performance areas where your company is still deficient.
5 or 6 - Although you are making progress toward high-performance manufacturing, you are at risk of losing market share - and also profitability - by failing to address those areas where performance falls short of the benchmark standard for a "yes" answer.
4 or lower - Your company fall in the high-risk group. Performance improvement initiatives should be an urgent priority for your management team as further delay could severely affect your financial performance and also lead to rapid loss of market share.
