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What is Non Value Added in Lean Management?

Understanding Non-Value Added Activities in Lean Methodology

Value is the most critical idea in Lean approach. An activity may be defined as having added value if it fits the following these criteria.

  1. Customer Willingness to Pay: If the client is prepared to pay for something, it qualifies as value-added.
  2. Transformation According to Customer Specifications: If an operation changes a product or service in accordance with the client’s requirements fall into the value-added category.
  3. First-Time Correctness: if an activity is done perfectly on the first attempt also adds value.

Anything else the buyer regards as a waste of time or effort. These are responsibilities that require time and effort but do not directly contribute value to customer satisfaction or product quality.

Let’s delve into some examples:

Waste in Administrative Processes

  1. Check-In Time: Waiting periods and administrative formalities during check-in time.
  2. Form Filling: Redundant data entry or repetitive form submission when filling in forms.
  3. Waiting for Information: Delays caused by information retrieval when waiting for information.
  4. Overhead Tasks: Non-essential administrative overheads in overhead tasks.
  5. Waste in Production Processes
  6. Unused Parts: Materials that are not used in the production process in unused parts.
  7. Transport and Installation Time: Time spent moving or setting up materials during transport and installation time.
  8. Inspections and Tests: Time is over quality checks that do not enhance the final product during inspection and tests.
  9. Supervisory Roles: Excessive managerial oversight in supervisory roles.
  10. Waste Bin for Defective Parts: Disposal of defective components.

From this point of view, in the Lean methodology, it is important to recognize and remove unnecessary activities. This idea is reflected in the Japanese triplet:

  1. Muda (Wastes in the Process): Identifying and eliminating non-value-added activities.
  2. Mura (Flow Interruptions): Ensuring smooth flow in processes.
  3. Muri (Strain in the Process): Minimizing strain or overburden in tasks.

There are two types of Muda:

Type-1-Muda (Business Non-Value Added): Necessary yet non-value-added activities.

Type-2-Muda: Unnecessary non-value-added activities, prioritized for elimination.

Wrapping Up:

By understanding and addressing these distinctions, organizations can streamline their processes, enhance efficiency, and deliver greater value to their customers.

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