Jun 15, 2006
Thinking Lean, Acting Lean = Being Lean…
Says Bruce Tompkins in …Lean Thinking for the Supply Chain
A lean supply chain is one that produces just what and how much is needed, when it is needed, and where it is needed.
That’s brevity for you that masks the utter transformation that an entire firm – its supply chain, manufacturing, personnel, accounting, finance, sales and management, have to go through in order to be lean. And that’s the destination – being lean.
There are two conceptual definitions in Lean thinking – Value and Waste.
What is Value?
Value, in the context of lean, is defined as something that the customer is willing to pay for. Value-adding activities transform materials and information into something a customer wants. Non-value-adding activities consume resources and do not directly contribute to the end result desired by the customer.