This paper presents a key performance indicator (KPI) concept for the implementation of Lean methodologies in a manufacture-to-order (MTO) small and medium enterprise (SME). Within a case study the concept is developed and improved. The purpose of the measurement system is to monitor the early Lean implementation process.

The paper explores the current literature about Lean performance measurement and discusses the critical success factors of a Lean implementation. It is suggested to integrate the performance dimension “leadership” into a KPI concept. The KPI concept consists of five dimensions: leadership, quality, costs, time and people respectively organisation. Additionally the Lean metrics “Process Velocity” and “Value Velocity” are presented and adapted to the specific requirements of a MTO environment. The application of the KPI concept in the case study is discussed. The benefit of an early integration of an appropriate KPI system during a Lean implementation could be confirmed.