Lean manufacturing strives to make obvious what processes add value simply by working to eliminate everything else that does not add value. As waste is eliminated, quality improves while production time and cost are reduced. We eliminate waste through the implementation of various lean tools which will be discussed further below and in later modules.

As we are discussing lean I want you to keep in mind that we don't just blindly try to identify and eliminate what we perceive as waste. Keep in mind the basis for the removal of waste is the customer, so we should work on fine tuning our waste reduction efforts on eliminating waste that decreases value to the customer. If doing a second quality check does not reduce defects more than a single quality check, the second quality check would be considered waste because it adds no value for the customer, so why should they pay for that?

Customers want on time delivery, perfect quality, and at the right price. This is an impossible task if you allow waste to persist within your processes. A process either adds value or waste to the production of a product. Anything that doesn't increase value in the eye of the customer must be considered waste and every effort should be made to eliminate that waste.

In addition to the customer service standpoint, a company is interested in being profitable. It just so happens that one of the most effective ways to increase profitability is to eliminate waste. Profitability comes down to the selling-price minus the cost to make a product. You cannot truly control the selling price as this is dictated by the market, but you can control your costs by eliminating waste in the manufacturing process to add value to the product. If you reduce the costs of your process you can sell the product cheaper, creating value for the customer in a cheaper higher quality product.

Learning Objectives:

- 3.1 - Describe the different types of waste as they relate to the manufacturing process.