Lean manufacturing processes have revolutionized the way that many leading enterprises deliver products to their customers and manage their supplier relationships. Over the past few years, the use of Lean techniques has expanded well beyond the automotive industry to delivering dramatic results into other sectors including aerospace, consumer goods, and industrial equipment among others.

Although "C-level" executives are enthusiastic about the benefits that can be derived by "Leaning out" operations, a recent Aberdeen benchmark study uncovered a large performance gap between those companies that are simply using Lean techniques on the shop floor versus those that have built a culture based on Lean thinking.

Of the close to 300 manufacturers that participated in this study, 90% reported that they are committed to Lean. However, further analysis found that less than 20% of these companies can be considered best-in-class. Companies that have achieved operational excellence through the deployment of a Lean strategy share three key characteristics:

• Dedication to basics such as streamlining processes, creating a well ordered work environment, and ongoing continuous improvement programs Kaizen).

• Lean processes have been rationalized and streamlined; Lean techniques have been memorialized and a "single version of the truth" is ubiquitous via a technology infrastructure that supports manufacturing, the enterprise, and the supplier base.

• Lean principles are reflected in the corporate strategy, on the senior leadership team, as well as throughout manufacturing and the company.

For those companies willing to make the commitment, Lean pays dividends in both the short and long term. Successful Lean implementations have met and exceeded the performance expectations of 80% of best-in-class companies in areas such as customer service and supply chain flexibility. In many cases, technology solutions are enabling best-in-class companies to outperform their competitors by continuously measuring, monitoring, and responding to key production metrics in real-time. Additionally, ERP, Lean Specialty/MES, and homegrown solutions provide the foundation from which companies are enshrining value streams, improving productivity, preparing for new product launches, and driving culture change throughout the company and supplier base.

Based on survey participants' responses, Aberdeen has divided manufacturers into three categories according to our competitive framework: best in class (those that have embraced Lean and made it part of their corporate culture), industry average (companies that have implemented Lean in some facets of the business but have yet to complete the journey), and laggard (those that are just learning about Lean and/or are meeting with some resistance).