{"id":303,"date":"2020-04-24T19:40:58","date_gmt":"2020-04-24T19:40:58","guid":{"rendered":"http:\/\/localhost:10003\/?page_id=303"},"modified":"2021-05-28T11:13:54","modified_gmt":"2021-05-28T15:13:54","slug":"operations","status":"publish","type":"page","link":"https:\/\/www.lean.org\/explore-lean\/operations\/","title":{"rendered":"Operations"},"content":{"rendered":"\n

Fully grasp how lean thinking and practice transform operations, yielding workflows that require less human effort, less space, less capital, less material, and less time to make and deliver products and services to precise customer desires and with fewer defects.<\/h3>\n\n\n\n
\"The
The Work Pie<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Achieving efficient customer-focused workflows<\/h4>\n\n\n\n

Organizations whose operations are driven by lean thinking & practice achieve competitive advantage because they are based on a customer-first philosophy and fundamental market economics. These companies recognize that the marketplace ultimately determines the price of goods and services. They understand that, since customers determine the prices of goods and services, the best way to increase profitability is to lower costs. With this awareness, they reverse the traditional profit formula:<\/p>\n\n\n\n

<\/p>\n\n\n\n

From<\/em>: Price = Cost + Profit<\/p>\n\n\n\n

To: <\/em>Price – Cost = Profit<\/p>\n\n\n\n

Fundamental to operations steeped in lean thinking and practice is an in-depth understanding of the specific work to be done, starting with the three categories:  <\/p>\n\n\n\n