Value-add and Non-value-add Activities

Value-add and Non-value-add Activities
Value-add and Non-value-add Activities

Since different people in an organization value different things, you need an objective and organized process to figure out which activities are really useful and which are wasteful. Lean provides clear guidance on what’s valuable for a business and what constitutes waste, so it’s a really useful approach.

Optimize the business

According to Lean, value is a rating of how well a product or service meets a customer’s requirements. Simply put, if a customer is willing to pay for it, it has value.

By identifying value in this way — from a customer’s perspective — you can optimize the business by minimizing or removing activities that are redundant, and modifying required activities so they use fewer resources.

Activities that make a product or service more valuable from a customer’s point of view are considered value-add activities. Polishing a completed product and delivering the product to a customer are value- add activities.

Similarly, a programmer who writes code is adding value; as is a banker who negotiates the interest on a loan on behalf of a customer.

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By successdotinc

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