The Biggest Waste of All?

Perhaps not bigger than some government spending programs, but that is a different problem far out of our control. Let's focus for a moment on a spending pipeline we have direct control over: lean consulting and payroll dollars.

If you do a quick search on LinkedIn for the term "Lean" and filter for Industry: Management Consulting you will get a return of approximately 3,468 results.

Let's say for a moment that all of those results are for hire. And for a modest Lean Manufacturing Implementation Project, a consultant should reasonably expect to take in at least $100,000 per year in order to live to see another day. One way to look at this problem is that companies are spending somewhere in the neighborhood of $350M for Lean Consulting. Companies who shell out this cash readily admit that an estimated 75% of the time, their Lean Implementation is considered a failure. In other words, we are prepared to flush $268M down the toilet every year. Sounds wasteful, right? Hold on just one minute and look in the mirror.

That is just the cost associated with Lean Consulting companies. What about those of us working within industry itself?

There are approximately 1.8M LinkedIn users that return the word Lean back in their current or past job title, this author included. Let's say that on average, these individuals are paid $80K per year. That puts us into some serious spend territory that would put some politicians to shame. Before I claim $144B is spent on Lean payroll per year, let's whack that back to a conservative 25%, just for the sake of argument. This lands us on $36B per year of estimated spend on assigning people to seek out and eliminate waste. On top of an additional $350M. Let's round to $36B and throw in our 25% success rate: o.k., we waste $30B per year on Lean activities!

And that doesn't include yellow aisle tape! And we Leansters wonder why executives and workers get bent out of shape over the next flavor of the month! We are advocating for a clean flush of their dollars!

I suppose if you compare this number to excessive inventories, we are talking small potatoes. January 2014 durable goods inventories were 10x the value of labor - so definitely not the biggest waste of all. But if I look at that inventory number ($387B) and assume that Lean was successful 25% of the time (that is in achieving flow and thereby reducing inventories) then there must have been some payback, right? How many do you think were truly successful at fully utilized lean systems where inventory was drastically reduced and maintained as a flow system?

Very few, perhaps less than 1% if I had to bet. In fact, durable goods inventories rose 3.7% in one year, hardly an inventory reduction. Of course, I'm playing with fire and about to be smacked down by a real economist who knows precisely how these numbers work, right? But that isn't really the point of this post so I'll stop while I'm ahead.

I wonder what that payback is on all of these Lean skills we have been learning? Are we achieving what we really need to? How do you see the payback? How do you sell the need for continuous improvement? What is the value in your organization? What responsibility does each individual in your organization have to effectively spend this money wisely? What can each do? How do we maximize the potential of each and every person, and not waste it 3/4 of their time? Can you imagine the results?

Labels: , ,


At December 11, 2018 at 6:14 AM , Blogger chandana said...

This is really an important blog with many helpful information. I have been searching for a long time for this types of content.
java training in Marathahalli

spring training in Marathahalli

java training institute in Marathahalli

spring and hibernate training in Marathahalli

At June 18, 2019 at 8:01 AM , Blogger Nashwa Mostafa said...

تنظيف خزاناتعزل خزانات طبي / / عزل بلاستيكي للمنازل/مؤسسات
شركة غسيل خزانات بالمدينة المنورة

يُنصح وبشدة القيام بعملية عزل وغسيل خزانات المبنى من وقت إلى الآخر، وذلك للمحافظة على صحة سكان المبنى

أفضل خدمات التنظيف وعزل الخزانات بالمدينة المنورة
شركة عزل خزانات بالمدينة المنورة

At June 18, 2019 at 12:40 PM , Blogger Nashwa Mostafa said...

سواتر حديدية لحجب الرؤية

At November 19, 2019 at 10:57 AM , Blogger Nashwa Mostafa said...

تصاميم مظلات حدائق
مظلات حدائق خشبية
اسعار مظلات الحدائق

مظلات حدائق متحركة

مظلات حدائق الرياض

تصميم بيوت شعر

At February 12, 2020 at 7:29 AM , Blogger Jones Brianna said...

Great post.I read your blog, it really helped me to learn something new. It's best and useful information. You have done a good work. Thanks.
Pubg Tournament App Development

At February 26, 2020 at 12:50 AM , Anonymous piping design course in india said...

Good information
We are the best piping design course in Hyderabad, India. Sanjary academy Offers Piping Design Course and Best Piping Design Training Institute in Hyderabad. Piping Design Institute in India Piping Design Engineering.
Piping Design Course
Piping Design Course in india
Piping Design Course in hyderabad

At April 14, 2020 at 12:33 AM , Blogger مظلات وسواترالتخصصي said...

مظلات وسواتر الاختيار السعودي الرياض – أجود خامات وافضل .انواع المظلات والسواتر مظلات · مظلات بي في سي pvc · مظلات حدائق · مظلات عامة · مظلات لكسان · مظلات مداخل فلل · مظلات مدارس · مظلات مسابح · مظلات مساجد · مظلات مواقف سيارات · مظلات
شركة سواتر ومظلات الاختيار الاول لتركيب مشاريع مظلات - السواتر - الهناجر - القرميد - البيوت الشعر - المستودعات-
ج/0500559613 ج/0535553929 ج/0548682241 ت/0114996351
تقدم ارقي واجمل انواع المظلات والسواتروالهناجر وانشاء المستودعات العامة كما نقوم بتوريد وتصميم وتنفيذ جميع انواع المظلات والسواترللمشاريع العامة الحكومية والخاصة بالشركات والفلل والقصور ومن اولويتنا :-
مظلات السيارات - مظلات المسابح -مظلات المدارس - مظلات الساحات - هناجر حديد - سواتر شرائح- سواتر مجدول - سواتر اقمشه - سواتر جدارية - شبوك زراعيه - وتشييد جميع انواع المظلات والسواتر الخشبيه (فيمكو) بجود عاليه
وتوريد وتركيب كافة الاعمال المعدنيه والمظلات وتغطيتها بالقماش pvc او بالصاج المعرج مع العازل ساندوتش بانل وكافة انواع الهناجر ويتم وصل القماش بماكينة خاصة لاجراء اللحام الحراري ( الكبس الحراري ) للقماش pvc المقاومه للحرارة وعوامل الجو الطبيعيه ..
مظلات سيارات متطورة وذات مواصفات عالية.
مظلات سيارات معلقة بدون أعمدة من الأمام لسهولة التوقف والحركة.
مظلات سيارات ذات أشكال جديدة ورائعة, منها الهرمي ومنها المقوسة وغيرها.
مظلات للسيارات بكافة أشكالها وأحجامها.
مظلات وسواتر الاختيار الاول - الاختيار الاول المظلات و السواتر
مظلات وسواتر الرياض – معرض التخصصي

مظلات وسواتر الرياض – سواتر الرياض – مظلات الرياض- تركيب سواتر بالرياض – هناجر الرياض – تركيب مظلات الرياض – مظلات بالرياض – سواتر ومظلات الرياض

سواتر و مظلات الرياض,مظلات ,مظلات الرياض,سواتر الرياض ,مظلات وسواتر الرياض التخصصي,

سواتر و مظلات لتغطية المسابح و الفلل و الحواجز الارضية و الاخشاب البلاستيكية .نوفر خدمة تركيب المظلات و السواتر للبيوت و المدارس و الجامعات. نوعية المظلات
مظلات - مظلات الرياض - مظلات التخصصي - مظلات وسواتر الرياض - سواتر جدة - سواتر الرياض - تركيب مظلات الرياض - مظلات سيارات - شركة سواتر - شركة مظلات - هناجر

مظلات وسواتر - مظلات وسواتر التخصصي
مظلات وسواتر الاختيارالاول التخصصي
سواتر ومظلات الرياض مظلات الرياض sawatr.com , مظلات وسواتر الاختيار الاول | مظلات وسواتر
خدمات مظلات وسواتر التخصصي
شركة مظلات وسواتر الاختيار الاول الظل الحديث التخصصي
مظلات وسواتر الاختيار الاول | مظلات وسواتر 0500559613
مشاريع مظلات وسواتر الاختيار الاول 0500559613. مشاريع مظلات الاختيار الاول بأفضل الأسعار تشييد مظلات الشد الإنشائي مظلات مميزة السعر

مظلات وسواتر التخصصي الرياض
مظلات الرياض التخصصي مظلات وسواتر الرياض0114996351 خامات اوربية وكورية باقل
مظلات وسواتر الرياض,مظلات وسواترالتخصصي

سواتر و مظلات الرياض-مظلات ,مظلات الرياض,سواتر الرياض ,مظلات وسواتر الرياض التخصصي,
مظلات , سواتر , مظلات و سواتر الرياض , مظلات الرياض , سواتر الرياض,مظلات وسواتر الاختيارالاول,سواترالتخصصي,مظلات وسواتر

مظلات وسواتر الاختيار الاول- الرياض-التخصصي-حي النخيل ت/0114996351 ج/ 0500559613

مظلات وسواتر التخصصي: 0500559613 تعرف على مظلات السيارات والسواتر انواعها واسعارها
مظلات سيارات وسواتر بالرياض pvc و سواتر الرياض مظلات سيارات

مظلات وسواتر - مظلات وسواتر التخصصي

مظلات وسواتر الاختيار الاول 0500559613 - تركيب مشاريع هناجر- مظلات السيارات -السواتر
تقدم مظلات وسواتر افضل الاعمال للمظلات والسواتر . مظلات وسواتر الرياض 0500559613 , مظلات سيارات , خصومات مذهلة , اشكال جديدة , مظلات الرياض , مظلات فلل , سواتر
مظلات وسواتر الاختيار الاول | 0500559613 | مظلات وسواتر | مظلات سيارات| مظلات التخصصي

مظلات الاختيار الاول الرياض ✅تركيب مظلة سيارات بيوم واحد وعمل سواتر الاسوار باشكال رائعه.

مظلات وسواتر الرياض - معرض مظلات التخصصي - مظلات
تركيب مظلات سيارات الرياض - مظلات وسواتر. مظلات وسواتر الرياض التخصصي افضل خامات المظلات مظلات المشاريع سيارات تركيب اعمال المظلات

‏مظلات وسواتر · ‏مظلات · ‏مظلات الرياض · ‏تركيب مظلات الرياض
مظلات سيارات وسواترالاختيار :0548682241 لتركيب المشاريع بـ (ابها-الخميس-نجران-جازان)

شهادة تسجيل معتمدة من وزارة التجارة والاستثمار
سجل تجاري رقم 1010896134
المركز الرئيسي / شارع التخصصي
الاسم التجاري للفرع/مؤسسة مظلات الاختيار الاول للمقاولات - سواترالرياض-مظلات وسواترالتخصصي
للأستفسار تواصل معنا على الارقام التالية
تليفاكس \ 0114996351

At December 9, 2021 at 1:35 PM , Blogger Sarika A said...

This comment has been removed by the author.

At December 23, 2021 at 9:34 PM , Blogger LastnightZZZ said...

I want to read more of your good articles. Well done. จุดเด่นเกมสล็อตออนไลน์ที่คุณต้องรู้

At March 5, 2022 at 8:37 AM , Anonymous cragro.com/사설토토 said...

The Toto site section should select the personal Toto address of the company that reviews the Safety game site. Since most online betting sites are private, it is difficult to determine the size or assets of a company. Please use sports betting using the first class site approved. 토토사이트 사설토토 안전놀이터

At March 5, 2022 at 8:38 AM , Anonymous totosite.bebe41.com said...

The most popular betting site in Korea is Private Toto. Private Toto, which occupies the majority of the Toto site market, is attracting the attention of sports Toto users by providing various live betting services. Please use the private Toto site, which has been identified as a safety playground, to make online bets.
토토사이트 토토사이트 안전놀이터

At March 29, 2022 at 1:58 AM , Blogger Unknown said...

I want to read more of your good articles. Well done.
FA Chai สล็อต

At April 7, 2022 at 3:51 AM , Blogger Reviewgame said...

It's an interesting article บาคาร่าออนไลน์

At May 5, 2022 at 5:19 AM , Anonymous PDUSU BA 2nd Year Exam Result 2021 said...

Excellent Article!!! I like the helpful information you provide in your article.
PDUSU BA 1st Year Exam Result 2021 | PDUSU BA 3rd Year Exam Result 2021.

At May 19, 2022 at 2:58 AM , Anonymous BA 2nd Year Exam Result 2021 said...

Awesome article, it was exceptionally helpful! I simply began in this and I'm becoming more acquainted with it better! Cheers, keep doing awesome!

At June 4, 2022 at 1:20 AM , Blogger Unknown said...

This comment has been removed by the author.

At June 14, 2022 at 4:48 PM , Blogger pup said...

ทรรศนะฟุตบอลน่าสนใจ I am always searching online for storys that can accommodate me ทีเด็ดบอลสเต็ป5

At September 1, 2022 at 10:12 AM , Blogger wanon said...

I will bookmark your site and take the feeds additionally..... สล็อตขั้นต่ำ 1 บาท

At September 11, 2022 at 3:58 PM , Anonymous Anonymous said...

Thank you for your good content. เล่นเกมสล็อตขั้นต่ำ1บาท

At October 7, 2022 at 8:37 AM , Blogger wanon said...

I will bookmark your site and take the feeds additionally..... evolutionแบล็คแจ็คไม่มีขั้นต่ำ

At October 10, 2022 at 9:06 AM , Blogger wanon said...

I will bookmark your site and take the feeds additionally..... เว็บไฮโลevo

At October 26, 2022 at 2:09 PM , Blogger tungkuay said...

Find a website about travel around the world.....

At December 31, 2022 at 6:05 PM , Blogger Aditi Ray said...

Do you want to know about Ali A Net Worth, early life, age, and relationship status?

At March 24, 2023 at 1:29 AM , Blogger karpagam architecture said...

Thanks for sharing this blog with us.
best architecture colleges in south india
best colleges for architecture
interior design course in coimbatore

At March 28, 2023 at 2:46 AM , Blogger Karpagam Institute of Technology said...

Thank you very much for sharing this blog.
best engineering college in coimbatore
Top Engineering Colleges In Coimbatore
Best Computer Science Engineering Colleges In India

At March 29, 2023 at 6:46 AM , Blogger Karpagam Academy of Higher Education said...

Such a nice blog. Thanks for sharing.
Best College for Electronics and Communication System in Coimbatore
Best Engineering College in Coimbatore
Top Languages College in Coimbatore

At December 18, 2023 at 9:30 AM , Blogger safetytraining0123 said...

Thanks sharing your knowledge NEBOSH Courses

At March 6, 2024 at 11:29 PM , Blogger Ududjdjfjjf said...

The Ethical Dilemma of Artificial Growth
Ethics and integrity in content creation should never be overshadowed by the hunger for fame and fortune. Artificially propped-up views deceive not only the algorithm but also the audience. This deception can erode trust and tarnish a creator's reputation.
The question every creator must ask themselves is this: Are these shortcuts worth the risk to their credibility? The answer, when weighed against the potential consequences, overwhelmingly leans toward the negative.


Post a Comment

Your involvement is essential to ongoing evolution of the leadership community.

Subscribe to Post Comments [Atom]

<< Home