As the global economic downturn deepens, cash strapped companies are looking for ways to cut costs and increase liquidity. One way to get fast results is to refocus your lean efforts on the basics--and correct the bad habits that are undermining results. Besides generating much-needed cash, you'll make your company stronger and better positioned for the upturn.
It's critical to take a closer look at whether your lean initiatives are really boosting cash flow and improving the bottom line, especially during tough economic times. Experience shows that well-executed lean programs can cut lead-times and quality costs by half, increase productivity by 10 percent to 30 percent, and reduce inventories by 30 percent to 50 percent. What's more, quick wins can deliver a large share of these savings. The problem is that lean is rarely done thoroughly and effectively. Companies often slip into costly bad habits that prevent them from achieving or sustaining these results.
Source: Industry Week