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In 1996 Jim Womack and Dan Jones wrote an important book called Lean Thinking. This book has helped raise awareness of the power, principles and tools involved in implementing Lean (see also ). Lean Thinking creates performance: VALUE: Exactly what are customers willing to pay for? This challenges us to think differently about all deliverables - products, services and outputs of administrative processes. Who is the end-customer? What are they buying? (eg. a customer wants orderly organized storage and buys a shelf, some bins and some labels) VALUE STREAM: ...is everything that goes into creating and delivering the Value to the end-customer. These are the steps that deliver the Value. The Value Stream involves all the businesses that together provide this value. (eg. the shelf, bin and label companies) FLOW: ...is a principle that helps us think differently about Value Streams. In most Value Streams, customers needs are served very slowly in large batches with long delays. Flow challenges us to reorganize the Value Stream to be continuous… one by one, non-stop. PULL: ...focuses us on how the Value Stream responds to customer needs. Most Value Streams push products and services downstream. Parts arrive in batches whether needed or not. (Or, services are scheduled / delivered regardless of how many customers are there.) Pull challenges us to only respond on demand to our downstream customers. PERFECTION: As we create Flow (one by one) and Pull (on demand) in the Value Stream, we are challenged to relentlessly improve it. Perfection challenges us to also create compelling quality (defect free) while also reducing cost (lowest cost). Focus on 4 key performance goals: on-demand, defect-free, one-by-one, lowest cost The principles of Value-Adding and Non-Value Adding are fundamental to Lean Thinking. They challenge us to look at Value Streams with new eyes. When we say Value-Adding in a manufacturing context, we mean some activity done by a p
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