![]() ![]() If there is little VA, get ready to buckle up and start improving. ![]() Benchmarkīy identifying the VA in your process, you’ll be able to judge the degree of opportunity for improvement. 3 benefits of value-added (VA)ĭistinguishing between the different definitions of VA will allow you to assess how much of your efforts are going towards producing something of value to your customer and how much is allocated to producing output you aren’t getting paid for. If pink is the predominant color, you might have some opportunities for improvement. This will allow you to assess your process at a glance. Once you have all your process tasks identified and mapped, it’s very useful to go back and identify whether that task is CVA, BNVA, or NVA.Ī common color code can be used where blue designates CVA activities, green for BNVA activities, and pink for NVA. NVA work needs to be eliminated as soon as is feasible.Ī VA analysis is often done when you’re mapping your processes. It’s usually a remnant of a previous process activity that is no longer needed or relevant. This is work that does not add value to your customer nor your business. The third approach to VA is the definition of non-value-added (NVA) work. Assuming that value is defined by your customer, some organizations refer to this type of work as business non-value-added (BNVA) since it is of little or no direct value to your customer. For example, the functions performed by your HR department, legal department, or accounting department are vital to doing business, but the customer really doesn’t care about them and would be unlikely to pay you for those activities. This is work that is needed to keep your business functioning, but is transparent to your customer, who probably isn’t interested or doesn’t care whether or not you’re doing it. The second is business value-added (BVA) work. This is the work that changes the item, is important to your customer, and that they are willing to pay you for. First, there is customer value-added (CVA) work. There are four main derivations of the definition of VA. When inspecting a part for quality, did you change the item, or is it exactly the same before and after the inspection?.Did moving something from point A to point B in the plant change the nature or characteristic of the item or just change its location?.Did the process actually convert the item going through the process or not?.Some critical questions you can ask when trying to determine if a task is value-added are: ![]() VA work takes the input and turns it into something of value to your customer - something they are willing to pay you for and that you do right the first time through your process. VA can be defined as the activities you do that change the fit, form, or function of the item going through your process transformation. Output may be product, service, information, or anything else that results from the transformation activities in the process. Inputs may be the classic elements of people, equipment, materials, methods, measurement, and environment - also described as the 6Ms. The SIPOC is an extended version of the process. All processes have an input that is transformed by some steps, activities, and tasks, resulting in an output. Let’s start with the concept of a process. In this article, we will define what we mean by value-added (VA) work and present other commonly used definitions that include the phrase “value-added.” We will describe some benefits of producing VA output, why you want to understand VA work, and some hints on how you might find out what work is value-added or not. Value will always be in the eye of the customer. Your customer determines whether what you produce has value or not. ![]()
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