Lean Frontiers: Are they differences in getting middle management on board from getting executive management support?
Are there differences in getting middle management from executive management on board for 1) developing the lean enterprise and 2) direct engagement on their part? What are the differences, if any?
Posted on May 9, 2015
Archives by Tag 'costs'

Tom Johnson: Reduce cost by nurturing relationships, not by cutting costs

By , - Last updated: Thursday, January 7, 2010
Since my first encounter with the company over 20 years ago, what has always impressed me about Toyota is a deep commitment to the idea that financial results emerge from managements' careful attention to nurturing process, not from their taking steps to achieve financial targets.   For decades, no other company has been as focused as Toyota is on reducing costs.  But no other company seems to understand as well as Toyota that lower cost is not achieved by cutting costs; instead, they lower cost is reached by cultivating patterns of relationships that are designed to continuously reduce the resources (including time) and effort required to serve customers better ...

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Michael Balle

Michael Ballé: Lean is about better managing costs, not cutting costs

By Michael Balle, co-author of The Gold Mine and The Lean Manager - Last updated: Monday, December 7, 2009
The fundamental insight is that in any cost structure there is a kernel of costs which are common to all competitors in terms of materials, components, labor, equipment, overhead etc. and then around these costs, an additional layer of costs which are due to the firm's operational method - waste, in the lean sense (costs you incur unnecessarily because of things we don't know how to do, poor planning decisions and wasteful activities this generates). "Lean" is lean in the sense that it tries to progressively take the unnecessary costs out of the system. Lean usually approaches cost management with ...

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