Business Efficiency Metric Implementation Strategies for the Service-providing Companies

Abstract

Lean and work with quality is highly explored and developed in many organizations and countries (Liker, 2004, p. 7). According to several research studies, there is a high level of implementation, but rather low level of evidence in service industry on actual results (Santhosh et al, 2018, p. 8) and lack of literature on use of Lean in new digital realities (Bortolotti et al, 2009, p.7), especially in relation to industrial revolutions 4.0 and 5.0 (Rossi et al, 2022, p.6). Situation is very different in manufacturing, already in 1960th the first quality gurus developed a system on how to measure costs of poor quality in manufacturing (Juran and Godfrey, 1998, ch. 8.1). Other aspect of metrics connected with quality improvements and Lean is the time perspective; in short term there is a much higher possibility to visualize and prove results from quality work, but in long-term perspective, also sometimes called long-term Lean enterprises (Liker and Morgan, 2006, p. 5), different metrics and approach to measurements and continuous work to show results are required.Digital age is here, and there is a need to re-think Lean and how success is measured. Lean 4.0 is well defined (Rossi et al, 2022, p. 5) and now we need to investigate Lean 5.0 and re-evaluation of the required success factors of Lean, quality work and metrics. Looking into research on Lean and digitalization, it is clear that the base Lean concept also when implementing it to a service industry company, shall be adjusted with industrial revolution and Lean 4.0 targets, in order to skip some steps and come closer to desired outcomes in the modern world.The aim of the study is to analyze the possible metrical implication of using Lean methodology and work with quality in a classic way, to suggest possibilities for metric implementation strategies for the service-providing companies.Systematic literature review and content analysis is used as a main research method for this paper. Empirical refinement and validation by using workshops with lean practitioners were used to pilot the assumptions. Main results and findings of the paper are through review of existing metrics, analysis of possible metrics and guidelines for development of metrics there is a possibility to develop a baseline for quality and Lean work results visualization method for a service industry company.

Keywords: LEAN, metrics, efficiency, quality, services

DOI: 10.54941/ahfe1003900