More Positive Cash Flow 

 

flow beyond Lean 

 

Our founder was nominated for a Nobel Prize in Economics for Working Capital Management.

To know more about flow and its origins in Demand Flow Technology (DFT) click on this link to Wikipedia:

flow-manufacturing-wikipedia

Profitable Companies can still go broke with negative Cash-Flow

So, how to make Cash Flow stay positive?

 

Is it just about having enough cash to pay the bills? Yes!

But if we get short of cash why not just ask Customers to pay sooner and pay Suppliers later?

Might that mean worse performance from Suppliers, worse Customer Service and a deteriorating payments cycle? Yes!

But what about all that cash laying on the floor embedded in “redundant” inventory waiting to be worked on?

Sounds like Lean might be the answer – eliminating waste

 

Lean has been around for decades, yet there are still those who say, “Lean didn’t really work for us.”

So, “Is there life beyond Lean?”

Yes, but not as we know it

 

It’s called flow – joining up the Lean dots, linking and synchronising the output from “islands of Lean excellence”

right through to the bottom line.

So, how to flow beyond Lean for

 

better Cash Flow

greater Productivity

more Profitable Growth

 

Manufacturing processes can become Kaizen’d “islands of excellence” in a sea of redundant inventory. In a 2-minute audio animation see how they can be synchronised in a flow to achieve more Positive Cash-Flow driven by  Productivity for Profitable Growth – click on the following, flow beyond Lean:

 

For more on flow for more

Positive Cash-Flow

 

 Contact Us

A couple of quick questions.

How much time does it take to actually make a fairly typical product in the factory? Minutes or hours?

How long does it take to actually get an order for that product through the factory? Days or weeks?

Why the disconnect? Why should it take say 3 weeks in a Working Capital Pipeline to make a product with 5 hours of work content?

Mind the gap. This pipeline is filled with Cash embedded in Working Capital that isn’t working! Does it really have to be that way?

What would it mean for your business if product was delivered in hours or days

instead of weeks or months

– liberating cash from Working Capital that isn’t working?

How much more Free Cash Flow would that be?

How important is it to you to achieve that?

 

Click here to find out how flow relates to other manufacturing concepts and solutions.

Or Click here to find out about how we implemented flow manufacturing for our customers.

Get the pdf sheet explaining Lean vs Flow

Our founder was nominated for a Nobel Prize in Economics for Working Capital Management.

To know more about flow and its origins in Demand Flow Technology (DFT) click on this link to Wikipedia:

flow-manufacturing-wikipedia

For more on flow for more

Positive Cash-Flow

 

Contact Us

Save

 

Case Study

case-study-perlos

Background: Finnish manufacturer of plastic moulded mobile phone components in China supplying high volume, limited life-cycle, high variability products to Nokia. The Finnish management was under pressure to deliver just-in time (JIT) to their customer but were being forced to do it from Just-in-Case inventory.

Action: Reduced batch quantities to minimum run quantities just sufficient to recover the time lost to set-ups. Machine set-up times were optimised with batch quantities and inventory. Productivity and overhead recovery were also improved in this way, so there was no need to invest in additional equipment. Deployed finite capacity planning tools to redefine the mix vs. capacity criteria of plastic moulding machines. Defined new factory layout utilising old and new machines.

Benefits: Reduced WIP by 65%, finished goods by 45%, obsolescence by 25%. This released $2.75m of cash from product sold, not at discounted rates but at full market price, which did not have to be reinvested in more inventory.

 

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