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* Example: If $100,000 worth of products sits in warehouse for 30 days, this creates 3,000,000 inventory-dollar-days | * Example: If $100,000 worth of products sits in warehouse for 30 days, this creates 3,000,000 inventory-dollar-days | ||
* Lower IDD indicates higher effectiveness. The ultimate goal would be 0 IDD. | * Lower IDD indicates higher effectiveness. The ultimate goal would be 0 IDD. | ||
==Reliability== | ==Reliability== | ||
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* Sales are only recognized after customer acceptance. | * Sales are only recognized after customer acceptance. | ||
* Inventory reductions are only counted once items are deployed to production. | * Inventory reductions are only counted once items are deployed to production. | ||
Like almost all lean thinking, you can only deliver quality products. Badly engineered products or bad testing is so antithetical to lean thinking, that none of the metrics will work correctly if you start reducing quality. | |||
=Relationship Between Metrics= | =Relationship Between Metrics= | ||