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Traditional process improvement focuses on local optimization of value-added activities such as improving machine efficiencies, and reducing cycle times, scrap and rework. This can produce significant results in local efficiencies, but doesn’t do much to decrease the time between when a customer places an order and the company receives payment for that order. Lean Manufacturing focuses on reducing that timeline by removing eight non-value-added forms of waste. Most operations have a surprisingly small percentage of value-added activity. Rather than improving the value-added activity itself, we improve the percentage of value-added activity by reducing the non-value-added segments of the timeline.

 

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