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The lean manufacturing philosophy has evolved from the Toyota production system. Lean manufacturing is a way of thinking, a culture where all employees are supported to continuously look for ways to improve the process with the philosophy of eliminating all non- value added activities. Also, lean thinking discards the traditional pricing formula, which states that (Quesada et al 2011): Price = cost + profit Lean thinking focuses on increasing the value to better serve customers and, at the same time, eliminate wastes to increase profits. Under the lean thinking approach, the pricing formula is reformulated to Profit = price – cost Therefore, the only way to increase profits is by reducing wastes, thereby reducing costs. According to Gulshan (2012) waste specifically means any activity that absorbs resources but creates no value. Value is determined by the customer in terms of products and services that meets a need. Derived from the Toyota Production System (TPS), the effort towards meeting the objective of increasing value-added work is to focus on eliminating seven basic types of waste: 1. Over processing: inappropriate or inefficient production steps. 2. Overproduction: producing too much too soon resulting in reduced capacity to fulfill immediate demand. 3. Excessive inventories: excess raw material, work in process, or finished goods that take time, space, energy, and other resources away from fulfilling immediate demand. 4. Waste in motion: walking, reaching, stacking, searching, and any other movement that does not add value. 5. Waiting: periods of inactivity for people, information, or goods. 6. Transportation: unnecessary movement of goods or information. 7. Defects: production of out-of-spec parts or communication errors. 22PDF Image | Impact of Vacuum-Drying on Efficiency of Hardwood Products
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