the Lean Manufacturing payoff
I've told you that I'm having a cash crunch. Some of my customers have made payments which have provided some relief. However, I'm also starting to see the benefits of some of the changes on the factory floor propogate into my financial statements. In English, that means that the kanban system we put in place to control inventory on the shop floor seems to have resulted in an inventory reduction of about $20,000 so far. That's not additional profit but it is more cash in the bank which is something I need pretty bad right now!
Overall, it looks like the inventory level is dropping about $5,000 per week. That can't go on indefinitely but it's a great contribution to the financials right now. It will be interesting to see how long we can continue the trend. I suspect we can pull out another $50,000 without trying too hard.
Overall, it looks like the inventory level is dropping about $5,000 per week. That can't go on indefinitely but it's a great contribution to the financials right now. It will be interesting to see how long we can continue the trend. I suspect we can pull out another $50,000 without trying too hard.
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