A couple of interesting comments to the last post (as well as the original question) got me thinking some more. I’d like to go back to basics.
There are no specific practices and behaviors that are “lean principles.”
I believe the principles operate at a higher level. The principles have to do with creating a culture in [...]
Steve Fonseca asks an interesting question on
The Whiteboard.
Are lean companies really transparent with their customers and suppliers as to cost/profits. Is this a lean principle or not, or to what extent?
I am going to offer an opinion, then perhaps other readers can chip in.
First, there is no real definition of what is, or is [...]
How does kaizen actually show up on the bottom line?
This is a question that gets asked a lot, and honestly, we owe the asker a better answer than “it just does, trust us.” (Even though this is true.)
Here’s my thinking - it shows up two ways.
One is intangible. By that I mean it is incredibly [...]
We have created an entire generation (or two) of managers who are very savvy with cost accounting models. They know exactly how “costs” and “profits” are calculated, and they know exactly what inputs to manipulate in order to make the numbers as good as possible.
They know, for example, how “inventory turns” are calculated, that “average [...]
Wednesday, August 8, 2007
Today I came across an article called
Lean Dilemma:Choose System Principles or Management Accounting Controls, Not Both by H. Thomas Johnson.
It is, or it should be a thought-provoking read, especially for a CEO or other senior manager.
The author also wrote “Profit Beyond Measure” which I have not read, but based on this article, [...]