This article describes an approach and methodology that explicitly considers the assessment of human capital in a lean manufacturing environment supported by cellular manufacturing. It details a systematic approach where human capital is inventoried in the form of developing a skills database. Specific critical skills are identified, grouped, and placed onto a Skills Inventory Form (SIF). The SIF is used to assess the skill levels of each worker via an employee, supervisor, and consensus assessment approach. The approach is illustrated in a Fortune 100 company, showing how to use it to drive training requirements, change hiring practices, assign workers, and establish compensation and reward systems.