Comments on: Understanding Total Cost http://www.dailykaizen.org/archives/552 A blog about improvement in health care Sat, 11 Oct 2008 23:04:13 +0000 http://wordpress.org/?v=2.6.2 By: Lee Fried http://www.dailykaizen.org/archives/552#comment-6410 Lee Fried Sun, 04 May 2008 22:47:28 +0000 http://www.dailykaizen.org/?p=552#comment-6410 Thanks to you all for the helpful thinking and references. I will keep you all posted as we progress. Lee Thanks to you all for the helpful thinking and references. I will keep you all posted as we progress.

Lee

]]> By: Scott http://www.dailykaizen.org/archives/552#comment-6404 Scott Thu, 01 May 2008 23:53:56 +0000 http://www.dailykaizen.org/?p=552#comment-6404 I have been following lean for only a short time. One of the sites I follow is www.leanaccountingnews.com. It seems to be geared towards production environments and takes financial reports towards value streams. There have been many thought provoking articles on the site, well worth a look in relation to your current endevour. I have been following lean for only a short time. One of the sites I follow is http://www.leanaccountingnews.com.

It seems to be geared towards production environments and takes financial reports towards value streams.

There have been many thought provoking articles on the site, well worth a look in relation to your current endevour.

]]> By: Paul http://www.dailykaizen.org/archives/552#comment-6403 Paul Thu, 01 May 2008 15:57:41 +0000 http://www.dailykaizen.org/?p=552#comment-6403 I would start with your A3 and see if your metrics support your startegy at all levels. Are you providing your service on time?, are your customers satisfied with you service (quality), Your service is no different than a machine that uses OEE top calculate the effiency. If you are billing at 200/hr. and have a forty hour workweek you should benchmark on the history of the resourse utiliztion. if you run seminars start with a target and see how close you come to it. It's about Quality ontime delivery productivity and innovation. I would start with your A3 and see if your metrics support your startegy at all levels. Are you providing your service on time?, are your customers satisfied with you service (quality), Your service is no different than a machine that uses OEE top calculate the effiency. If you are billing at 200/hr. and have a forty hour workweek you should benchmark on the history of the resourse utiliztion. if you run seminars start with a target and see how close you come to it. It’s about Quality ontime delivery productivity and innovation.

]]> By: Bryan Lund http://www.dailykaizen.org/archives/552#comment-6402 Bryan Lund Thu, 01 May 2008 14:16:45 +0000 http://www.dailykaizen.org/?p=552#comment-6402 You did say that you know that your current structure drives your organization to do the wrong things. The question here to ask is "why"? Another way to ask this question is to test it: if you do the right things, are those improvements not reflected in your financial reporting structure? I think by testing this out, you may find that your organization begins to do two things: 1) understand the gaps between financial reporting and lead-time reduction oriented improvement. 2) most importantly, involve your finance group in a more rigorous, scientific test of the system. This is a sure-fire way for your financial folkls to see the gaps for themselves. You did say that you know that your current structure drives your organization to do the wrong things. The question here to ask is “why”? Another way to ask this question is to test it: if you do the right things, are those improvements not reflected in your financial reporting structure? I think by testing this out, you may find that your organization begins to do two things:

1) understand the gaps between financial reporting and lead-time reduction oriented improvement.

2) most importantly, involve your finance group in a more rigorous, scientific test of the system. This is a sure-fire way for your financial folkls to see the gaps for themselves.

]]> By: Tom Marotta http://www.dailykaizen.org/archives/552#comment-6401 Tom Marotta Thu, 01 May 2008 12:12:36 +0000 http://www.dailykaizen.org/?p=552#comment-6401 I have always been partial to Goldratt's accounting: (Throughput - Operating Expense) / Investment It helps you focus on what's important. I have always been partial to Goldratt’s accounting:

(Throughput - Operating Expense) / Investment

It helps you focus on what’s important.

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