20 November 2008                www.strategosinc.com

Lean In Hard Times

The Gift of Desperation

Desperate times are the best times to implement Lean manufacturing and operations. Indeed, the originators and many practitioners went to lean out of desperation. There are at least three reasons for this:

1) Paradigm Shift

Hard times and desperation provide a window of opportunity in which individuals and organizations are willing to question existing paradigms and develop new, more relevant mental models.

2) Rapid Cash Flow Improvement

Large, rapid inventory reductions are an early benefit of Lean. This is particularly important today when credit is so tight.

3) Self-Financing

When properly planned, Lean requires little expenditure in the early stage. And these early stages generate the most cash flow. Within a few months, lean initiatives are usually self-financing.

Our new web pages expand on this topic and include three case studies from Ford Motor Company, Toyota and Harley Davidson. In all three cases, Lean saved the companies from imminent bankruptcy.

Strategos can help get your Lean program started and improving cash flow--often in a few weeks or months. Please call me to discuss the possibilities.

Best Regards,

Quarterman Lee

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