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The "Upstairs Factory" is Draining Your Productivity

This excerpt below was taken from an article featured by Industry Week.
Read the full article here.


When most executives think of an industrial company, they picture a highly disciplined factory under constant scrutiny for any evidence of inefficiency. Let’s call this the “downstairs factory.”

It rarely occurs to anyone that there could be similar “upstairs factories” in the same company — in non-factory departments like finance, marketing and sales.

The average Fortune 500 company squanders more than 12% of its potential earnings because of inefficiencies in its upstairs factories.

Our research indicates that the average Fortune 500 company squanders more than 12% of its potential earnings because of inefficiencies in its upstairs factories. Yet upstairs factories can be “industrialized” and “leaned out” in much the same way as those downstairs have been…

Continue reading this article at Industry Week >

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