More than seven out of ten poorly performing manufacturing companies could double their return on capital and boost productivity by more than 20 per cent, by adopting all the principles of lean manufacturing, according to research undertaken by McKinsey & Company's Production System Design Centre.
In a survey of UK manufacturers, McKinsey & Company's Production System Design Centre found that 71 per cent of businesses which developed poor financial returns to their shareholders (less then 10 per cent return on capital) were making poor use of lean manufacturing techniques. However, six out of ten (60 per cent) strongly performing businesses, which generated return on capital employed (ROCE) every year over five years of more than ten per cent were making good use of lean manufacturing.