The phrase signifies a detailed explanation of how Lean principles connect directly to activities that increase a product’s or service’s worth from the customer’s perspective. It highlights the importance of differentiating between operations that the customer is willing to pay for and those that constitute waste. For instance, in manufacturing, assembly processes that directly contribute to the functionality of the final product are considered valuable, while unnecessary transportation or storage are not.
Understanding this relationship is crucial for streamlining processes, reducing costs, and improving overall efficiency. By focusing on actions that directly increase worth, organizations can eliminate waste and enhance customer satisfaction. Historically, this concept has been instrumental in the evolution of manufacturing and service industries, leading to significant improvements in productivity and profitability.
