Sunday, October 30, 2011

Lean Is Not Eliminating Waste


One of the teams I worked with on the current value stream map for a throughput and subsequently the future value stream, I recollect the question we were confronted with - how to increase the value creating ratio? We tried our might to bring the non-value creating time to as low as possible, but, the required storage of even 3 days made sure we still had to struggle to get the ratio even to a double digit. 

It is at this time that one of the members asked if we have to increase the value creating ratio, then we have to either decrease the denominator (component of non-value creating time) OR increase the numerator (value creating time)! This directly translates to the question, how do we add more value to the customer? This is the core of lean - how do I add more value to the customer? How do we increase our offerings to the customer in a way that will increase the value already being added? Have you thought about this for your business or your throughput?


How much ever you eliminate waste, at the end you have to delight your customer. The core of lean does not talk about eliminating waste, but to increase value addition.


(cross-posted at www.bmgindia.wordpress.com)

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