What
is value? The Toyota Production System (TPS) offers a definition.
- Value is
defined by the customer.
- Value is
anything that a customer is willing to pay for.
- Anything that
doesn't add value is waste.
How is value related to quality? The TPS definition
of value supports the definition of quality "Fitness for Use".
That is, when a product is demonstrated free of critical defects and has
the functionality and performance that a customer is willing to pay for, the
product is "Fit for Use" and ready to ship.
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