The internal value adding system cannot meet external customer demands with high inventory, high staff costs, high waste, low quality and thus low profitability.
The internal value adding system only just meets customer demands for delivery and quality but costs are still too high.
The internal value adding system meets customer delivery targets without high inventory; staff and resources are focused on quality and delivery.
Internal value adding capability exceeds customer expectations and products are delivered on time and on quality.
Profitability is high and costs are low. The perfection stage. Fine tuning of the value adding system and advanced proactive discussions with customers regarding their needs in the future.
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