Monthly Archives: November 2013

Time for Leadership – How Standard Costs Impact Company Behavior

There are many things wrong with using standard costing in an Lean company, but perhaps the most dangerous is when standard costing actually drives a company’s behavior in a way that makes Lean unworkable.  Here is an example: Recently, I … Continue reading

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Why Lean Performance Measurements? – Part I: Think Radical

Introduction Our thinking about performance measurements has evolved over the years. Early on in my work I began to see a critical need for companies to change their thinking about performance measurement. As more and more companies responded to sharp … Continue reading

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Wrong Measures Send Wrong Signals

Corporate management of a large multi-national company told its plants to become lean. So the plants began implementing lean by creating pull systems based on shipments from finished goods warehouses that were part of each plant. Corporate conducted monthly operational … Continue reading

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