The Iceberg of Ignorance
by Yoshida – 1989
- 4% of Problems known to top managers
- 9% of Problems known to middle managers
- 74% of Problems known to supervisors
- 100% of Problems known to front line workers
This study showed how management’s failure to understand its processes and practices from the perspective of its customers, suppressed the company’s profits by as much as 40%.
This is the main reason why the people involvement is one of the keys to a successful Lean Production implementation.