Are Lean Manufacturing Efforts Reflected in Corporate Finances?

There are direct relationships between work in process inventory, cycle time, and throughput for most manufacturing processes. Companies that focus on lean manufacturing principles are aware of these relationships, and strive to minimize work in process and cycle times in order to maximize their manufacturing efficiencies. A study has been conducted to determine whether some of these relationships can be seen at the corporate level. Many companies have recently begun reporting more detailed information regarding their inventory figures, and include work in process data in their annual reports. Several industries are investigated here to determine whether corporate results reflect their concern – or lack of concern - regarding manufacturing efficiencies. Of particular interest are the automotive, the consumer goods, and the pharmaceutical industries