Priority budgeting or lean thinking?

Organisations are normally constrained by finance or resource availability, hence leaning initiatives need to be focused on high priority targets, i.e. ones that will give the biggest return on investment.   The real problem is that many organisations do not have the right information to allow them to select the best targets.

To be effective, management need to broadly know the true value, cost and performance of all processes and their inter-relationships with support functions.   Without such knowledge there is a risk that leaning initiatives will not be scoped or  prioritised optimally. In short, higher value targets may be missed, resources wasted and measurements of potential benefits unreliable!

The best way to optimise resources is by leading with a programme of Priority Based Budgeting.  Carried out properly  this will yield massive returns on investment and prioritise all longer term improvement projects.  Priority Base Budgeting is complementary to Lean Thinking and process engineering, it stimulates process leaning, accurately targeting leaning effort to processes that will yield the biggest return on investment.

Should you consider that “Lean Thinking” in your organisation is “Not Lean Enough” then take a look at OPTIMISER cost optimisation in a box.  It is a methodology and system that will let you know exactly where to target your efforts continually.  For more information click here.


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