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INTRODUCTION
As a CFO you are given a business case and asked: “How much money will
be made from this?” e outcome of the decision rests with your nancial
analysis. How would you, as CFO, answer this question about Lean? Your
answer depends on your perspective of Lean.
It’s common knowledge that Lean eliminates waste. e issue is how
to measure what Lean does. A traditionally thinking company measures
waste elimination by the amount of labor time saved. e traditionally
thinking CFO’s nancial analysis is quite simple. Multiply the total labor
time saved by a labor rate to get the total savings Lean will generate. ...