Financial Benefits and Benefit Projection
Management action affecting capacity levels and use will have a significant impact on the financial benefits. Last chapter we modeled the changes using capacity maps. Next we will need to project the timing and amount of cash benefits that will result from the changes.
Thus far in the book, we’ve focused on getting to the point where we can design our improvements to realize cash value. We started by focusing on what it takes to realize cash benefits. We then looked at the types of improvement projects there are, how they generate value, the steps necessary to document the improvements, and the management action required to realize cash improvements. This chapter is focused on documenting ...
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