A Fine Line

In attacking waste, there are three criteria that must be satisfied simultaneously. The best quality with the lowest cost in the shortest amount of time is always the goal. We are focusing here on minimizing costs, but these factors are closely interrelated, and must all be considered. In the business world there is always a customer to define the levels of these targets. In our case however, you are your own customer. This means that it is up to you to determine what is necessary in terms of quality, price, and delivery time for any product you purchase. It is important to set precise goals for each, as the final cost is directly related to your specification. Lets take housing as an example.

The full spectrum of quality is always available in housing, but location is also a highly important consideration. Often families choose a neighborhood or a school district before they have decided on a house and only search within that area. The same house may be available for 25-30% less elsewhere, but your quality specifications (a house located in this neighborhood) require the extra expense. Similarly that particular house, within your chosen neighborhood, may not currently be available. In this case you are required to delay your purchase until the home you want hits the market. You could get the cheaper house in another neighborhood immediately, if you are willing to compromise quality. If funds were unlimited, you could easily knock on the door of the house of your choice and keep upping your offer until the owner cannot refuse to sell. In that case you could shorten your wait to zero. This logic applies to all purchases.

Quality, cost, and lead time are always in balance and can never be considered in a vacuum. To minimize cost without compromising the other factors, careful measurement and deliberation is required.