For companies that successfully implement lean techniques, the benefits can be significant. According to a McKinsey survey of 30 electronics factories, wasteful practices and high defect retes can erode profits by 20-40 percent compared with returns at world-class production facilities. In addition, the survey established that if the output of the output of the median factory were to match the top performer’s output, the profits would increase by approximately $25 million a year. Other benefits include reducing inventories and raising overall quality standards.