– Defects: Defects are mistakes that result in items being scrapped or reworked. Delivering a drink to a customer with ice when the customer has requested no ice is a defect. Checking a guest into a hotel room with the incorrect bed type (i.e., two queen-size beds instead of a king-size bed) is a defect. In both situations, wasteful rework is required and the customer is left with a poor impression.
– Overproduction: This is production in excess of what the customer requires. Customers in one restaurant were sometimes served water with three lemon slices. Most customers were satisfied with a single lemon slice. As Hirsch explained, “Customers write us all the time to tell us what they love about our casinos in Tunica, but occasionally getting additional lemons in their ice water is not a cause for customer delight.” Producing three times as many lemon slices as necessary was waste because it consumed money and time without creating additional value for the customer.
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