Value Velocity or How Do I Know Lean Is Working?
Is lean working? How does my lean program compare to our competitor's program? How lean is our industry? What stocks to buy? What stocks to sell? What's more important cutting cost or cycle time? Inventory is good isn't it? These are all questions heard every day, in a swarm of different ways, in every industry and in every boardroom across the nation. And the leader asking the question does not need a ninety-minute presentation to substantiate a "gut-feel" answer.
The first response by mid-management to the question is to look at cycle times, "Yeah, sure lean has worked! The cycle times have come down from 63 days to 45!" Immediately that person's detractor will chime in, "No, but we're producing the wrong product; it's sitting in the outlet!" or even worse, "We're spending tons of overtime to do it, Harry!" So the leader then asks to see the data on cycle times, margin mix, sales figures, inventories, and......
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