88 ◾ The Innovative Lean Enterprise
◾ Reducing a very expensive feature(s): Is there a high-cost feature that
does not contribute to customer value that can be reduced in level or
totally eliminated?
◾ If profitability cannot be achieved, then it may be necessary to cancel
the project. Remember that numbers, although not 100% accurate, can
tell a rather accurate story, especially if experienced individuals are
working through the cost and pricing scenarios.
The above tool is one of many options that drive decisions. Among the
profit model that I defined, it is wise to also run through other calculations,
such as return on investment (ROI), net present value calculations, Internal
Rate of Return (IRR), etc., to help in the decision-making p