The Lean CEO: Leading the Way to World-Class Excellence

CHAPTER 4

A NEW WAY OUT OF FINANCIAL CRISIS

     It is not necessary to change. Survival is not mandatory.

—W. Edwards Deming

Although Lean makes its biggest impact over decades, not years, it is important to remember that it originated in part as a series of measures to turn a financially troubled Toyota around. Lean’s first win was the dramatic improvement in productivity that allowed Toyota to grow its capacity at a time when it was unable to invest in new resources.

 Many Lean transformations since that time have experienced early windfalls from quickly identifying and eliminating large amounts of obvious waste. In fact, many Lean CEOs freely ...