If we were to eliminate Wastes in any form, how would we be able to convert the waste into dollar value in order to convince a Bank to start adopting Lean?
The calculation you’re looking for is COPQ or Cost of Poor Quality. The idea is to calculate the labor hours saved by removing waste and then multiply them by the average loaded salary of the process participants impacted. In the…
Elisabeth is a Master Black Belt at GoLeanSixSigma.com, the co-author of The Problem-Solver’s Toolkit and co-host of the Just-in-Time Cafe. For over 30 years, she's helped leading organizations like Amazon, Charles Schwab and Marriott International, Inc. build problem-solving muscles with Lean Six Sigma to achieve their goals.
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