Lean 911

The Problem with OEE and Absorption Accounting


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Some metrics were never meant to survive in a Lean world. OEE and absorption accounting might sound smart on paper, but they push the exact behaviors that wreck flow, bury quality issues, and inflate inventory. The result? A system that looks efficient but delivers chaos.

Mark DeLuzio breaks down how these outdated measures keep companies locked in batch production and bad habits. He shares firsthand stories from the factory floor and the boardroom, including a jaw-dropping moment with a CFO who learned the hard way that ROI is not a reason to keep machines running at all costs.

This episode is for anyone tired of playing metric games that look good in reports but hurt performance where it matters. If you’ve struggled to explain why certain KPIs feel off in a Lean environment, you’ll walk away with clear examples and a smarter alternative to measure what actually matters.

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Lean 911By Mark DeLuzio

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