Three Lean financial metrics that can be used to show direct contribution to key metrics like Revenue Growth, Gross Margin, COGS, EBIT, and Cash Flow. If visually managed it will get the attention of Leadership

1. Metrics that demonstrate the financial
contribution from Lean Sigma
 Robert Baird
Lean Teams USA
+1 215 353 0696
8-Mar-14
www.leanteamsusa.com
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2. Why do most leaders not pay attention to Lean Sigma?
53% do not see financial contribution
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3. Financial Contribution
As a Lean Practitioner do you measure the
contribution towards important business metrics
like Revenue Growth, Gross Margin, COGS, EBIT,
or Cash Flow?
If the answer is no then use these financial
measures as a result of Productivity, Quality, and
Lead Time improvements.
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4. Direct Labor Efficiency Variance
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5. Direct Material Quantity Variance
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6. Savings from Lead Time Reduction
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7. Benefits
• Tangible financial results demonstrated from
continuous improvement efforts
• Solid connection to key business metrics
• Visual management will get the attention of
Leaders
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8. Call Us for Guidance, Support, and Training
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• Metrics that demonstrate the financial
contribution from Lean Sigma (blog)
• +1 215 353 0696
8-Mar-14
www.leanteamsusa.com
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