
62 • e Lean CFO: Architect of the Lean Management System
root causes of your labor cost: the total amount of labor required and the
productivity of that labor.
Labor spending is based on the total amount of labor is the total number
of people that are assigned to your value streams. Lean companies recog-
nize that departmental barriers, especially those between frontline opera-
tions and traditional manufacturing support functions (such as quality,
maintenance, and engineering) are barriers to improving ow. is is
why Lean companies assign as many people as possible to work in value
streams fulltime. Value stream costing recognizes this as labor ...