Professional Documents
Culture Documents
• Begin with:
– Who are your Customers?
– What is of value to them?
Value as defined by Customers
• Value Added
– Activities that change form, fit, or function of a product or service
– Activities the customer wants to pay for
• Waste (Non-Value Added)
– Activities that do not change form, fit, or function
– Activities that fall under the 7 forms of waste
– Activities not performed right the first time
• Required Non-Value Added
– Activities causing no value to be created but which cannot be
eliminated/changed, e.g. law, safety considerations
Tackling Process Improvement
TYPICAL VA NVA ORIGINAL
COMPANY LEAD TIME
TRADITIONAL
PROCESS VA NVA
IMPROVEMENT
WASTE
REDUCTION
VA NVA
TIME
Greater
Greater opportunity
opportunity for
for improvement
improvement by
by focusing
focusing on
on
reducing
reducing non-value
non-value added
added activities
activities
7 Forms of Waste
• Transportation – Any unnecessary movement of materials, products, or
information