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Lean - Coggle Diagram

- - - - The rate at which customer sales are generated less truly variable costs (typically raw materials, sales commissions, and freight). Labor is not considered a truly variable cost unless pay is 100% tied to pieces produced.
    - - Money that is tied up in physical things: product inventory, machinery and equipment, real estate, etc. Formerly referred to in TOC as Inventory.
    - - Money spent to create throughput, other than truly variable costs (e.g., payroll, utilities, taxes, etc.). The cost of maintaining a given level of capacity.
  - - - Beat
    - - Inventory to cover uncertainty
        
        Constraint buffer
        
        Customer buffer
    - - Signal
        
        some amount of inventory has been consumed.
- - - - 7 types
        
        Overproduction
        
        Inventory
        
        Defects/Repairs/Rejects
        
        Motion
        
        Over-processing
        
        Waiting
        
        Transport
      - Underutilized skills
      - Underperforming processes