Building a lean organization means eliminating waste or non value added operations. This reduces costs and speeds up the process flow. Six sigma improves quality which also reduces costs and helps to improve the velocity of the process.

The cash flow over time (CF/T)management system measures the performance of of the process in terms of costs and velocity. The costs are built into the base measure. The organizational gainsharing is built around the actual cash flow per hour the process produces. When the process produces a cash flow per hour above the base measure,employees, supervisors, and managers share in the profit gain.

RULE ONE; THERE IS NO CREATIVITY, INNOVATION, OR PRODUCTIVITY UNTIL THE CUSTOMER PAYS FOR IT. You can fill a warehouse with productivity. You may even pay an incentive bonus for it. But if it dosen't sell, that productivity and incentive bonus comes right out of your pocket. Satisfied, good paying, customers are the results of good performance.

RULE TWO; IF IT'S NOT MOVING, IT'S NOT MAKING MONEY. Until your invested capital enters the system or process, reaches your loyal, well paying customers, and returns to you in the form of cash flow, you have not made a penny.Only the process of moving goods or services through the system can produce a profitable cash flow. All else is waste.

RULE THREE; NO MATTER WHERE THE PRODUCTIVITY IMPROVEMENTS COME FROM, EVERYONE GAINS. A key element of the CF/T system is the fact that your business becomes one single team. Both employees and managers work to build profits for themselves and for the business. This unique approach fosters cooperation between everyone. Employees become managers - money managers.

Velocity (turns) times profit percentage equals Return-on-Investment. The process,and only the process,can create profits.The speed of the process times the profit it producess equals R.O.I.

Under the CF/T management system, the performance of the process is measured weekly against the base measure. The base measure tells the process how much cash flow it must produce per hour for the company to make a "reasonable gross profit margin". All productive and non-productive hours are matched against the current cash flow (paid up invoices). Time spent building excessive inventories, doing non value added operations, or producing waste is paid for out of current cash flow. As improvements are made, the cash flow per hour improves and, under Organizational Gainsharing, everyone benefits.

The CF/T management report tells management exactly how well the process is doing against the base measure.The system is simple to put into place because it requires only two sources of information: productive hours and adjusted cash flow.