The document discusses a new Lean methodology called "LACost" developed by LVSI to help organizations accelerate their continuous improvement initiatives. LACost uses operational data to provide real-time insights into costs, profitability, analytics and key performance indicators. It is designed to break down silos within organizations and provide a single source of truth for improvement efforts. The goal is to help organizations more quickly focus on the highest impact areas to improve profitability, growth, customer retention and morale.

1. 5-28-11<br />Accelerating Continuous Improvement initiatives….. <br />“LACost” methods for LEAN rationalization and customer retention…. <br />Today's market forces are sweeping away market and industry structures that have defined your competition. To prosper, many organizations are rapidly adopting or evolving their Six-Sigma, Lean Manufacturing business strategies, and other operational excellence programs. Soon even these programs will no longer be a competitive factor in and of themselves. What is most important is how well organizations implement and execute their continuous improvement programs. Your strategies must drive the operational, administrative, and supply chain organizations. In short, make these initiatives a reality. <br /> Customer retention moves higher on the agenda of most firms as customers are increasing pressure for even better service plus they expect their suppliers to have an internal focus on speed, cost and quality improvements.<br />In our (30) years of operation experience, the execution, discipline, a predictable ROI and sustainability as a result of these continuous improvement strategies has been somewhat elusive to most senior exec’s and honestly, to the rest of the organization as well. A large part of this is the ability to gather operational intelligence into a meaningful format. The second challenge is to open up the “Organization Silo’s” that divide the organization, create confusion, defensive agendas and relentless stress. More importantly, Silo’s stifle personal growth, perpetuates longer lead times, quality issues and costs that will never be recouped. <br />To help our clients react to business pressures, open the expertise sequestered in “Silo’s and help in the acceleration of your continuous improvement strategies, Art William and Tom DeForge of LVSI have developed a Lean System methodology called “LACost”. Additionally, we have our Lean Enterprise “Boots on the Ground” implementation expertise to compliment this program.<br /> “LACost” was designed specifically to use your operation data (without disrupting your current systems) and transpose that data into one dynamic, easy to read report which will provide:<br />Real time Cost of every product and service you provide<br />Reliable data that directs the “Lean Team” to perform “Kaizen” on the right projects <br />Profitability by customer, by product line, by operating center, etc, etc.<br />Real Time Analytic’s which can be accessed, for those authorized, upon demand<br />The ability to play “what if” scenarios that will ease difficult rationalizations so that the best business decisions are made. <br />Alarms and Alerts for potential shortfalls in production or business improvement plans. These alarms and alerts support sustainability of the gains of the past and improve the time line on future projects.<br />“LACost” can also show the ROI in real time as these initiatives or projects mature because timing of capital availability can be crucial.<br />Designed to be a useful tool tailored for your Lean Team, Engineering, Front Line Supervisors, Marketing and Sales, Senior Executives and Quality Constituents. Everyone authorized is getting the same data; therefore it becomes one version of the truth. This is a tremendous help in opening up Silo’s and moving the organization in its entirety in the right direction. <br />We are excited about this new product, and more importantly we look forward to sharing this initiative with you. Our experience has told us quite clearly that the faster we can get targeted operational data, the faster we can focus in on the parts of the business that will increase profitability, allow improved growth, enhance customer retention initiatives, and improve morale at all levels of the organization. In short, a problem well defined is a problem half solved. <br />Please give us a call, we would be happy to provide a demo, walk your operation, and discuss your challenges! <br />Tom DeForge and Arthur Williams<br />