There is a silver lining in the dark cloud that hangs over manufacturing companies. A small but growing number of companies have demonstrated the ability to compete successfully in the international marketplace. A handful have done so in spectacular fashion, and their stories have become the stables of the conference and seminar circuits. The majority of successes have been achieved slowly and painstakingly but are just as impressive.

All of these companies exhibit improvements in their performance by achieving:

• Dramatically improved inventory turns
• Reduced manufacturing lead times of 50% or more
• Reduced work in process inventory
• Reduced finished goods inventory
• Reduced scrap and improved non-conformance
• Eliminated use of overtime
• Eliminate "hockey stick" phenomenon (high shipping at end of month)

Why is it when almost every company in the world sorely needs results similar to these, there are so few success stories? Simply put, it is that widely used management policies and practices that are based on the standard cost system are not applicable in today's competitive environment.