
148 • e Process Mind
other segments in the process. ink how the distribution center moved
the cost downstream when they focused on a pick target for order selectors
or a headcount reduction target for wrapping pallets. e budget process
incurs all types of activities the customer is not interested in paying for;
activities such as meetings to explain budget variances.
CUSTOMER DEMAND DEFINES CUSTOMER VALUE
Demand can and should be well dened, not vague. It needs to be precise,
even mathematical. For example, we might dene demand in terms of
the number of items created (e.g., number of widgets, phone calls, trailer
deliveries, people served ...