Companies usually focus on improvements surrounding value added activities rather than the large amount of non-value added time. Lean Activities focus on eliminating the non-value added time to dramatically reduce lead time and improve cash-flow.

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75/2/20 rule

If you can reduce your lead time by 75%, your productivity will be double and your cost
Per unit will be down by 20%


Waste are generally categorized as Non-value added activity in any organization. Lean primary focus it to attack the Non value added activity first and reduce the Non value added activity through further improve & eventually eliminate it completely. A process in general has around 95% Waste in the form of Non value added activity.



One Point Info:

        Lead time: 
                              Lead time is the amount of time that passes from the start of a process until its finish. Companies review lead time in manufacturing, supply chain management, and project management during pre-processing, processing, and post-processing stages. By comparing results against established benchmarks, they can determine where inefficiencies exist.


Eight type of waste

Following are eight types of lean waste which are Non-value added activity (Click on each waste to explore more)
E-Book reference:


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