Can Lean and ROI Co-Exist?
Every advocate of Lean with a skeptical boss has been asked “What’s the ROI of Lean?” at least once. And each of us knows of Art Byrne’s (The Wiremold Company’s legendary CEO and author of The Lean Turnaround) admonition that “the winners will be those companies that focus on their processes, not their results”. But many CEO’s and CFO’s are not willing to take, what they believe, this “leap of faith”.
Since ROI is a single number that reflects the results of virtually all the activities within the company, it cannot be improved directly, which would be like trying to increase the speed of your car by tweaking the speedometer needle. It can only be improved by improving the inputs into the calculation.
In this session you will learn…
- How Lean is misunderstood
- What are the key inputs to the ROI calculation
- Which elements of Lean impact which inputs to the ROI calculation
- How to avoid the biggest trap when thinking about ROI
About the Facilitator:
Orest (Orry) J. Fiume was Vice President of Finance and Administration and a Director of The Wiremold Company, West Hartford, CT, which gained international recognition as a leader in lean business management in “Lean Thinking,” by James P. Womack and Daniel T. Jones. Orry was Wiremold’s chief financial officer from 1978 until his retirement in 2002.
Orry led Wiremold’s conversion to lean accounting in 1991 and developed alternate management accounting systems that supported the company’s entire lean strategy. He went on to install lean accounting at more than 20 Wiremold acquisitions and is co-author of the 2004 Shingo Prize winning book “Real Numbers: Management Accounting in a Lean Organization”. He has taught workshops, or been a guest speaker, on Lean Accounting at the Lean Enterprise Institute, the TBM Institute, the University of Dayton Center for Competitive Change, MEP’s in many states, and 16 countries around the world. In addition, Orry has been inducted as a Life Member of the Shingo Prize Academy, which has been referred to by Business Week as the Nobel Prize in manufacturing.
Orry has a Masters Degree in Management from Rensselaer Polytechnic Institute and a Bachelor’s Degree in Accounting from Fairfield University. He is a Certified Public Accountant, and a member of the American Institute of Certified Public Accountants. He is also a member of Financial Executives International, where he is a past president of the Connecticut Valley Chapter. In addition, he serves on the Board of Directors of The Lean Enterprise Institute, the leader in Lean Thinking and Lean Education and The Thedacare Center for Healthcare Value, the leader in promoting Lean Thinking in Healthcare, and the Lean Education Advancement Foundation. He also is a Board member of a Connecticut based manufacturing company.