Budgeting & Forecasting › Zero-Based Budgeting
How can ZBB be combined with continuous improvement or lean thinking?
AdvancedAnswer
ZBB's challenge to every activity complements continuous improvement and lean by exposing non-value-adding activities for elimination and reallocating resources to value-creating work. Periodic zero-based reviews reset the cost base, while continuous improvement drives ongoing efficiency between reviews—together preventing cost creep and waste.
Real-world example A zero-based review removes non-value-adding steps that lean initiatives then keep from returning.