Text Box: Lean Enterprise Toolbox
The Lean Enterprise Toolbox is a dynamic set of tools and techniques that helps companies to achieve and sustain new levels of performance in key business metrics. The tools originate from Motorola’s Six Sigma program and the Lean tools from the Toyota Production System. These tools have been used in many different companies and industries over the years to help improve the performance of business. One of these companies that applied these techniques on a variety of products and services is Danaher Corporation (NYSE:DHR). Danaher has grown from less than $1 to over $12 Billion during the last two decades since they started implementing theses tools. Danaher stock has enjoyed a CAGR of 23.1% since 1988 and they have generated free cash flow from operations in excess of net income for 16 years straight. These tools and techniques are the cornerstone of a Lean Enterprise, but many companies fail at implementing the tools, or only enjoy short term gains since they do not implement all five components of Lean Enterprise.