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Chapter 5   Profit increase is logical ... the Virtuous Cycle of Profit Increase

This is how profit increase is achieved in your factory.

So how is profit increase achieved? Please examine the diagram below.

This is a relationship graph of the factors that promote profit increase. Asprova will navigate you through the complicated paths to the goals of your company's management.

The Asprova features listed in the above diagram include those planned to be implemented in the future.

The left part of the diagram shows the goals of your company's management -- that is, short-term "profit increase" and "long-term profit stabilization". The right part of the diagram shows Asprova's features. The diagram as a whole shows the relationship between the goals of your company's management and Asprova's features. There are many factors that contribute to achieving short-term profit increase and long-term profit stabilization (shown in green in the diagram). However, the best approach is not to try to improve all these factors at once. If you try to improve too many areas at once, your profit increase project will be dragged out over a long period of time, delaying the return on your investment. We recommend that you plan to produce some results quickly, and continue with a series of step-by-step improvements. The first step of a profit increase project using Asprova focuses on the following three factors:

1. Visual Management

2. Shortening Lead Times

3. Inventory Reduction

The reason we focus on these three factors is that it is relatively easy to achieve these goals using Asprova. If you look once again at the Virtuous Cycle of Profit Increase, you can see how these three factors contribute to increasing profit.

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