Budgeting & Forecasting › Zero-Based Budgeting

How can ZBB be combined with continuous improvement or lean thinking?

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Answer

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.

Common follow-ups: What does ZBB expose for lean? | How do the two reinforce each other?