There is a simple answer, but the money is just a bit harder to find.
It is tied up in your current operations, consumed by all manner of things that do not add value to a customer.
Machine down time, rework, waste, on line inventory, double handling, and a host of other things that get in the way of a steady, predictable and continuous flow through a factory.
Progress to completion through a production process can only go as fast as the slowest point in the process. Working around these choke points entails either building WIP inventory, or slowing the faster parts down to the speed of the slowest part of the process. There is no third internal option, but ‘outsourcing’ the slow bits is sometimes a productive choice.
Progressive removal of any impediment to a predictable even ‘flow’ and you will save money. However, even more importantly, you will free up capacity that will give you the opportunity to sell more from the same fixed cost base.
That is where the gold hides: Money for nothing.
Do you want it?
