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by Chris Chiappinelli, MA Editorial Staff Posted on Tuesday, August 14, 2007 4:45:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Mesmerized by the cost-reduction opportunity, many manufacturers and other businesses are missing the true benefit of lean practices. |
| Keywords: | Lean manufacturing, lean production, cost cutting, eliminate waste, Lean Enterprise Institute, James Womack, grow revenue, growth opportunities, reduce inventory, lean shop floor |
Although lean has been a popular management discipline for decades and has gained followers across industry sectors, it is being mistaken as primarily an engine of cost reduction, a new report from the Lean Enterprise Institute has found. In a survey of nearly 2,500 businesspeople — mainly manufacturers — study author and institute founder James Womack, Ph.D., uncovered an overwhelming bias toward cost containment. Conducted earlier this summer and released in conjunction with the nonprofit lean advocacy group's 10th anniversary, the survey found that 46% of respondents considered "reduced cost" the biggest benefit of their lean initiatives. There's no doubt that lean helps lower costs, according to Helen Zak, chief operating officer at the Lean Enterprise Institute. But companies grappling with competitive pressures tend to see that aspect alone, and that can turn lean into a shortsighted endeavor. "They just look at half of the equation, not all of it," Zak said in an interview with Managing Automation. [Click to continue] |
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