Mar 2 2016
Sorry, But Lean Is About Cost Reduction… | Rob van Stekelenborg | LinkedIn
“It seems to be popular these last years and more recently to explicitly state that Lean is not (only) about cost reduction or cost cutting. See the recent posts by Mark Graban or Matt Hrivnak. So let me be somewhat controversial in this post (which I think is allowed to spark the discussion) and drop a bombshell: I think Lean is about cost reduction.”
Sourced through Scoop.it from: www.linkedin.com
Michel Baudin‘s comments:
I know that much of the TPS literature is about “reducing costs,” but it never includes any discussion of money! Ohno is even quoted as saying “Costs are not there to be measured, but to be reduced.” On the face of it, it makes no sense, because cost is an accounting term intended to represent the monetary value of all the resources spent to achieve a result.
Jun 29 2018
What Is Cost?
Costs are the object of heated arguments when working to improve manufacturing operations, with participants assuming that the notion of cost itself is self-evident while, in fact, they understand it differently and talk past each other. This is an attempt to bring some clarity to the subject.
Continue reading…
Contents
Share this:
Like this:
By Michel Baudin • Management • 5 • Tags: ABC, Accounting, Activity-Based Costing, Cost, Game theory, Lean, TPS