Lean Value Proposition

Lean Value Proposition by Walter McIntyre

The basic Lean and business value proposition in looks like this:

Profit = Perceived Value – Inherent Value

Lean process improvement projects address the Inherent Value piece of this equation. The idea is to reduce the inherent cost of production and delivery of the product or service. A common mistake that teams make is to assume that inherent value issues are not customer driven. This is a case of being inwardly focused instead of a more balanced focus (inward and customer driven).