ABSTRACT
The purpose of a business is to create value for customers and a financial return for investors. Sustaining a leading market position is only achieved by continuing to improve and/or reinvent attractive offerings at a rate faster than competitors. In order to support continuous reinvention, a company must invest in technology development requiring significant financial resources. The Lean Enterprise Operational Management System (LEOMS) reduces cost of goods sold (COGS) by having a positive impact on economic value-added "drivers". Productivity benefits show up immediately in COGS, assuming additional volume can be sold or people who are no longer required can be redeployed to other value-adding activities. Lean enterprises are designed and operated based on Lean culture assumptions and principles that transform companies only when there is internal integrity and consistency of leaders' behaviors aligned with Lean people leadership expectations.
