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Last month I wrote about the cost of delaying action when improvement opportunities are identified. My point was that many people only consider the accrual of benefits AFTER they have taken action and not the opportunity cost of not taking or delaying action (e.g. if I can be $100 better off by doing X then it is effectively costing me $100 if I don’t do X). And by the way, if you delay action you can never catch up!
This item resulted in quite a bit of feedback so I thought that this month I would close the loop on that discussion by sharing the feedback and comments with everyone. Essentially the comments I received come down to one concern: Are the benefits from inventory savings real? Here is a summarized version of my responses.
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