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Financial benefits of lean improvements

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“We see wonderful result in operations but, they don’t show up in the financial statements. If lean is so great why doesn’t it hit the  bottom line”?

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What happens in early phase of Lean …

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What Lean improvements bring …

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So what to do?

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Three Choices:

  1. Eliminate the resource
  2. Use the freed up Resource to expand the business
  3. Otherwise, do some combination of the above two

True analysis of lean improvements can only come by giving due consideration to the freed up resource and by setting up a strategic team to “find the best option” for the free resources.

Acknowledgement: Practical lean accounting by Brian Maskell

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Author: Kaizen Institute - India!

Kaizen Institute – India is part of the Global Kaizen Institute operations. Kaizen Institute was established by Sensei Masaaki Imai, the GURU of Kaizen. He wrote the 1st book 28 yrs ago and that is when it all started . We operate in 30+ countries today and have over 400+ coaches helping more then 600 organizations Learn, Apply, Sustain – Kaizen/ Operational Excellence. In India we have two physical offices – Pune & Ahmedabad and 27 coaches in all.

2 thoughts on “Financial benefits of lean improvements

  1. Good reading material .Thank you

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