Why should a company prioritize becoming leaner and more efficient today?
Don’t many executives tend to back-burner new initiatives like this in uncertain economic times? DD: Some executives tend to put improvement initiatives like lean on the back-burner when times get tough because they are not viewed as critical, but others, who have a longer term view, seize the opportunity to make improvements when the economy is bad. Lean can help companies navigate a bad economy in three ways: • Lean implementation results in a shorter lead-time and lower inventory; this frees up of cash (through inventory reduction) and faster response time to the customer. • Lean thinking results in greater productivity—the ability to produce more value with the same or fewer resources, driving down production costs. • Lean thinking improves quality. Better quality results in greater customer satisfaction and efficiency. Each of these key benefits enables a company to grow during tough times while simultaneously freeing up cash and driving costs down. SGS: What’s the most common rea
