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Examples of Levers

Updated over a year ago

Example #1

A port can decide each day how many gates to open to the facility, which would affect how many trucks could gain access. Each gate has a cost to open and operate, so choosing which gates to open alters metrics/goals related to throughput, and cost. The lever is therefore "number of gates to open."

Example #2

By adjusting which products are made on which production lines, a company can affect throughput, cost, and many other metrics. The lever is therefore "Product choice by production line", and there may also be levers for "Number of production lines" and "Number of people per production line."

Example #3

Number of hens, trucks, warehouses, silos, or other items that can be changed with normal business investment activities.

Example #4

First pass inspection quality: if a company invests more in early quality control or better equipment, quality can improve. Alternatively, a company can choose to tighten or relax rules on first pass inspections vs. final inspections or shipping.

Example #5

Price: increasing or decreasing price is one of the most common levers in non-contracted sales.

Example #6

Supply of product inputs: investing in having more than one vendor for key supply chain items can cost more and decrease loyalty vendor, but it could result in fewer outages or drive price reductions through competition.

Example #7

Man-hours, number of production shift, or shift plans can be a lever to increase or decrease production.

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