BSC Model for Measuring a Firm’s Progress in Implementing Lean Manufacturing with a Case Study

Companies adopting lean manufacturing philosophy have recognized that relying mainly on performance measurement system raised only to support lean manufacturing philosophy is no longer adequate. The lean environment needs new kinds of performance measures, that reflect the strategic objectives of lean enterprises, which can be extracted by employing the concept of BSC and merging a BSC’s strategy map with value stream map used in a lean company. Therefore, this paper aims at suggesting a new framework to measure performance in a strategic perspective, convenient to companies that adopt lean manufacturing philosophy, by constructing the most relevant lean performance measures that are stemmed from lean determinants. These measures must be developed to support lean enterprises' mission, vision and strategies at three different levels of the lean performance measurement framework which are SBUs level, value streams level, and cells level. This study was also applied in El-Araby water heater factory in Egypt, through constructing a case study to clarify the application of the proposed framework using the scoring model.