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According to James P. Womack (Lean Thinking, 1996), the critical
starting point for lean thinking is value. Value can only
be defined by the ultimate customer. And it's only meanngful when
expressed in terms of a specific product (a good or a service, and
often both at once) which meets the customer's needs at a specific
price at a specific time.
Value is produced by the producer.
From the customer's standpoint, this is why manufacturers. Yet for
many reasons, value is very hard for manufacturers to accurately
define.
Value can be expressed as follows:
Value = Quality x
Service x Price ------------------------- Time
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