Value Added vs Non Value Added Explained

The first step of lean thinking is to understand the value for the customer.
Therefore, comprehending what constitutes value-added and non-value-added is a must for those embarking on the lean journey.
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✍ Here is the transcript of the video:
In the context of Lean Manufacturing, the concepts of Value-Added (VA) and Non-Value-Added (NVA) activities are fundamental.
▶ What is Value Added
Value-Added activities are those that contribute directly to the creation or improvement of a product or service, in a way that customers are willing to pay for.
These activities transform the product or service in some meaningful way.
For example, in a manufacturing process, this could be the actual assembly of a product, or the painting of a component.
The key is that these activities must be done right the first time, as rework or corrections are considered waste.
▶ What is Non-Value Added
Non-Value-Added activities, on the other hand, are those that consume resources but do not add value to the product or service from the customer's perspective.
These activities are often necessary under the current operating system, but they represent opportunities for improvement.
Examples could include the movement of materials, waiting time, overproduction, or excess inventory.
▶ The goal of Lean
The goal in Lean Manufacturing is to minimize or eliminate NVA activities as much as possible, as they represent waste and inefficiency.
This is achieved through continuous improvement efforts, such as process mapping, root cause analysis, and the implementation of Lean tools and techniques.
However, it's important to note that not all NVA activities can be eliminated immediately. Some may be necessary due to current technological or operational constraints. In these cases, the aim is to identify and understand these activities, and work towards reducing them over time.
▶ Conclusion
In summary, understanding the difference between VA and NVA activities is crucial for an industrial engineer. It allows for the identification of waste and the development of strategies to improve efficiency and productivity.
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#valueadded

[@joelballard4955]

NVA are realtors and car salesmen

[@EricImel]

You mentioned my favorite way of explaining it to people. "Does the customer want to pay for this?" Everything we do from moving materials to generating reports the customer is paying for. Do they want to pay for this material to be stacked and unstacked? Do they want to pay for this meeting? It really helps relate "value or waste" in everything you do.