Do continuous-improvement initiatives drive financial benefits for manufacturers? And if they don't, why bother with them?
The answer to the first question is an unequivocal "yes," according to recent research, which renders the second question moot.
The survey, conducted exclusively for IndustryWeek and TBM Consulting, looked at the impact of continuous-improvement programs on three financial metrics - anticipated revenue growth and operating income growth, and cash flow over the past year. Across the board, companies with no continuous-improvement programs performed worse across all three measures.
For example, more than 50 percent of survey respondents that have no continuous-improvement program reported they expect revenue growth to be 3 percent or less in 2012. This response compares with fewer than 20 percent of companies with mature continuous-improvement programs anticipating revenue growth of 3 percent or less in the coming year.
