“[…] When starting an improvement effort, I usually ask about the minimum target the team is attempting to achieve. The answer is often something made up on the spot or a generalization, like as much as possible. Improvement efforts should generally be driven by the actual requirements of the business. For example, if a company determines that the time between a customer placing an order and receiving the product is too long, it should determine an improvement target based on what the business needs. If it currently takes 42 days and customers expect to receive the product in 22 days because of their needs or what competitors are offering, the minimum improvement needed is 20 days.[…]”
Sourced through Lessons in Lean
Michel Baudin‘s comments:
Gregg Stocker illustrates abstract principles with concrete examples, which makes his meaning clear and unambiguous. The above excerpt is meant to show the need for employees and managers to understand the consequences of local actions on the organization as a whole. As he points out in the rest of his post, it’s not always easy.