
41
5
Measure Lean Performance, Not Profits
INTRODUCTION
One of your primary responsibilities as CFO is to be able to link operat-
ing performance to nancial results so that you can explain the nancial
statements to their readers. In a traditional manufacturing company with
a lot of inventory, the impact of inventory on the nancial results oen
obscures the impact of operational performance. is leads to the creation
of traditional performance measurements that typically focus on three
areas of operational performance: nancial, performance to plan, and key
performance indicators.
TRADITIONAL MEASUREMENTS
Financially based measurements (any number ...