Constructing a Composite Indicator for Manufacturing Companies Using Lean Metrics and Analytic Hierarchy Process

The aim of this study is to construct a composite indicator which can measure the degree of leanness of manufacturing firms using the analytic hierarchy process. The composite lean indicator is based on several lean performance categories which in turn is composed of a number of indicators. Analytic hierarchy process is applied in order to determine the relative importance or weight of each lean performance category and indicator by getting the opinion of lean experts. Results show that Process & Equipment is deemed as most important compared to Supplier & Customer Relationships, Human Resources, and Manufacturing Planning & Control. Furthermore, Error-Proof Equipment, Customer Orders Delivered JIT, Worker Involvement in Continuous Improvement Programs, and Visual Control of the Shop Floor are all considered to be comparatively more important with respect to other lean indicators.