How OEE and absorption accounting quietly kill Lean results and what to measure instead.

Webinar replay: Why Lean transformations stall—and what 99% of leaders still don’t get about culture, systems, and problem-solving.

In this episode, Mark DeLuzio talks about Lean Horizons’ Managing Director Jon Boucher discussing the span of control necessary for problem-solving. In particular, Mark and Jon address the following:

In this episode, Mark DeLuzio talks about why Lean/CI people are not being listened to and gives sage advice as to how to reverse this trend.

Do you want to get the attention of leadership? Then you need to speak their language. In this episode, Mark DeLuzio discusses FCF %NI and why this measure is key to a successful Lean transformation.

You will never transform your company by point kaizen alone. Learn why traditional Japanese consultants were not enough in order to propel Danaher into a space all by themselves. Kaikaku (radical change) was a hallmark of Danaher’s Strategy Deployment process.

Mark discusses how companies develop On-Time Delivery KPIs (OTD) that do not reflect the customer’s needs. Learn how Mark calls these “Watermelon KPIs” – GREEN on the outside and RED on the inside. Do your OTD metrics truly drive customer satisfaction?

Mark discusses building profitability into the design process via the Target Costing methodology. Roughly 70% of a product’s cost is baked into the product’s design and process, leaving only 30% to Kaizen (post-design). Learn from Mark’s experience as CFO of Danaher’s JAKE Brake, where Target Costing played a significant role in JAKE’s profitability.

Mark talks about the types of Value Stream organizations and their benefits. But why are organizations reluctant to move to a Value Stream structure? Mark discusses the reasons why.

Mark talks with Jerry Wright on his new book about the ills of MRP. Jerry talks about his experience of seeing failure after failure with companies trying to perfect MRP. He argues that a Lean Transformation is impossible if MRP is used as the primary resource planning tool. MRP was first introduced in 1964 and despite its failures, is still the tool of choice for so many companies today.