The Efficiency Improvement That Choked Cash Flow - FRAKXION

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The Efficiency Improvement That Choked Cash Flow

CFO insights from Frakxion’s bench: The Efficiency Improvement That Choked Cash Flow.

“Management celebrated when one department cut production time in half. The efficiency metrics looked incredible. What they didn’t see was the massive triangular piles of work-in-progress inventory growing between stations, tying up hundreds of thousands in working capital. The ‘improvement’ was actually choking their cash flow.”

The insight: Always map your entire process flow before optimizing individual parts – it often reveals better opportunities anyway.



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