At the heart of lean methodology are the seven classic wastes (eight or  nine if you subscribe to evolved methods). Waste is the enemy of lean. Strategies such as pull systems, first-in-first-out prioritization, takt time management, and kaizen are methods we use to minimize and eliminate waste in our productivity.

At the heart of waste management is the value stream. The value stream is the means by which we identify, track, and understand the business advantage and the cost savings of the war on waste. A proper value stream structure enables ready and easy focus on value-added work and waste activity. It also provides a metrics structure to measure our waste.

If we choose to use cost trade-offs as justification for the expense, time, effort, or long-term decisions that support the lean strategy and methodology, then we must have a solid value stream structure. Without our production and business systems aligned to the value stream, we cannot correctly and accurately assign cost or account for the true cost of production and waste. This is a very important understanding that is very often missed or ignored.

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