Although all of the following conclusions are
based on a single manufacturing scenario, generalities
drawn from these results can be applied to many
manufacturing business models. In summary, the
data obtained from the execution of the simulation
tool identified that the impact that a rapid reduction
on inventory has on net profit is profound. Further,
the research identified that the negative impact to
net profit continues as long as inventories are being
reduced, and that performance gains elsewhere in
the operation resulting from the lean program cannot
counter the negative effect presented by the accounting
practice of cost attachment. Therefore,
misleading financial performance results will confound
a successful lean implementation. Additionally,
the more successful and aggressive the lean
program is, the greater the negative impact on reported
financial performance measures until the reduction
in inventory levels ceases