4. EEliminate Waste – Reduce Cost FFaster Time To Market - Pull SShorter Lead Time - Flow IImproved Quality – Operator Control IImprove customer responsiveness and satisfaction CCreate A Design, Sales, Order Entry, Procurement, And production System In Each Product/Market LLocate the Value Stream Near Your Internal And External Customers - Location Goals of Lean
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7. The Seven Wastes People Process Product Problems Inefficient layouts Lack of proximity of machines Off-line resources Motion Defects Inventory Transportation Overproduct ion Waiting Time Operator waiting time Long setups and lead times Large batches Making without demand signals Smoothing forecasts/cust. demands Long cycle times Reduced efficiency High overall lead times Costly rework Long delays for rectification Dissatisfied customers High raw material inventory High work-in-process inventory High finished goods inventory Unnecessary movement Extra handling Overprocessing