Page 5 - FLL Virtual Binder 2018

• Value-added: Activities that directly add value to the product and the customer is willing to pay for. e.g. Drilling, Forming, Assembling
• Non Value-added: Activities that do not add value to the product or service, therefore is something you don’t want to be doing and is considered waste. e.g. Scrap, Rework, Too much inventory.
• Non Value-added but Necessary: Activities that do not add direct value, but are required to run our business. These are considered incidental but unavoidable work with current technology or methods. Although they are viewed as necessary, still seek ways to reduce the wastes within them.
e.g. Accounting, Purchasing, Human Resources etc. ... Who are the customers (internal or external) that you serve?
What are the primary activities that your customer would consider value-added?
Principle 2
Stabilize by identifying all the steps in the value stream.
Each process whether on the shop floor or in the office can be identified and mapped. This allows us to ‘see’ the process and enables us to list the steps as Value-added, Non Value-added, or temporarily Necessary but Non-Value Adding. We need to improve the first, eliminate the second, and reduce the third.
A Current State Map reflects what is presently happening in the process and identifies each action and reveals those which may be considered waste.
The acronym ‘TIM WOODS’ is used to remember the seven wastes.
What are some examples of the seven forms of waste at your workplace? Use these tools to observe your processes and help identify potential wastes.
Front Line Leadership: Continuous Improvement
5