Form cover
Page 1 of 1

The Hidden Factory Profit Leak Assessment

How Much Profit Is Your Factory Losing Through Hidden Waste?

Most manufacturing businesses don't have a sales problem.

They have a Hidden Factory.

A Hidden Factory exists when people are working hard, machines are running, overtime is increasing and customers are being served, but profit is quietly being consumed by waste, rework, delays, firefighting and poor flow.

Complete this 3-minute assessment to discover whether your operation is leaking profit and where the biggest opportunities may be hiding.

Assessment Questions

For each statement score:

0 = Never

1 = Occasionally

2 = Frequently

3 = Almost Always

1. Production output is uneven throughout the month, with quiet periods followed by end-of-month panic.

2. We regularly rely on overtime to hit customer commitments.

3. Managers spend more time firefighting than improving performance.

4. Orders are frequently expedited because they run late.

5. Work is frequently waiting for information, materials, approvals, decisions or just waiting!

6. We experience recurring quality issues, rework or customer complaints.

7. Production schedules change repeatedly during the week.

8. There is a significant gap between planned performance and actual performance.

9. Different departments blame each other when problems occur.

10. We have large amounts of work-in-progress sitting between operations (but not always what we need).

11. We struggle to identify profitability until well after the month has ended.

12. We believe we need more people, equipment or space to improve performance.

13. Key individuals constantly need to intervene to keep operations moving.

14. Delivery performance (OTIF) is inconsistent or below target.

Total Score
Add all scores together.
Maximum Score = 42

Your Score =

Results
0-10
Well Controlled
Your operation appears relatively stable.
While every business contains some waste, major profit leakage is unlikely to be occurring at scale.
Focus on maintaining standards, improving visibility and preventing performance drift.
________________________________________
11-20
Emerging Hidden Factory
Warning signs are beginning to appear.
The business is likely absorbing avoidable costs through interruptions, delays, schedule instability and inefficient workflows.
These issues are manageable today but often become expensive as the business grows.
________________________________________
21-30
Significant Profit Leakage
Your Hidden Factory is likely consuming a meaningful percentage of profit.
You may be experiencing recurring firefighting, excessive overtime, quality losses, schedule instability and uneven production flow.
Many businesses in this category assume they need additional capacity when the real opportunity is recovering capacity already being lost.
________________________________________
31-42
Critical Hidden Factory
The business is likely operating in a constant state of reactive management.
Profit, delivery performance, quality and employee wellbeing are all at risk.
The good news is that substantial gains are often available without additional buildings, equipment or headcount.
The largest improvements usually come from improving flow, reducing waste and creating operational stability.
________________________________________
Common Hidden Factory Symptoms
If you scored highly, you may recognise some of these:
x Lumpy production
x End-of-month panic
x Excess overtime
x Firefighting managers
x Schedule changes
x Rework and quality failures
x Late deliveries
x Excess work-in-progress
x Margin erosion
x Team burnout
x Poor visibility of true profitability
________________________________________
Next Step
If your score was above 20, there is a strong possibility that hidden waste is consuming capacity, cash and profit inside your operation.

A focused Hidden Factory Review can identify where losses are occurring, estimate the potential financial impact and highlight practical opportunities to improve Quality, Delivery and Cost without major investment.
To discuss your results, contact:
Andy Dobson
andy@lean4business.co,uk
https://www.lean4business.co.uk
Want to discuss further? Email your details below

First Name

Company

Email Address