100 • e Lean CFO: Architect of the Lean Management System
based on the same operational issue as capital purchases: capacity. In a
Lean company, if you ow actual demand, then hiring people is due to
an increase in demand. e question that must be answered is whether
the demand increase is considered permanent or temporary. Full-time
employees are considered permanent demand and should be hired when
permanent increases in demand are expected. If demand is considered
temporary, then overtime, temporaries, or outsourcing may be sources of
temporary demand.
e nancial impact of hiring people will be an increase in actual labor
costs as well as increases in revenue and margin due to the increase in
demand. If the future-state value stream retur ...