Value Added Vs Non Value Add Process

What Is Values? this is the basic and fundamental question that we have to answer or found before we do or create product/services that we ill offer to our customer. and the terrible thing that many of us define the value used our perspective not used our customer

What Is Value? Value is defined by the Customer. 

To Add Value or Not to Add Value, That Is the Question. 

• Defining value-added. (VA)

(1) The Customer must be willing to pay for it.

(2) The activity must change the product.

(3) The activity must be done correctly the first time. 

• Defining non-value-added. (NVA)

(1) Not valued by the customer.

(2) Not transforming.

(3) Not correctly done. 

• When non-value-added seems like value-added 
       Like: Administration, accounting, legal, reports, approvals, testing, inspections, transportation

Here a simple Matrix for you to be focus on reducing waste after you identified it.




After we map and identified list of  process and activity we could map it in to the matrix  and  try to start with the easy one.

Here some hint to use this matrix :

Step 1:  Unnecessary Vs Non Add value. recommended : Stop doing that activity. 

This is a quick in action that no need any effort and impact to process if e stop doing it but will give impact to whole team that by doing simple thing we could improve process more.

Step 2: Necessary Vs Non Added Value. Recommended: Use Reduce, Integrate, Simplify, Eliminate (RISE) concept to optimize the process.

in this step it's quite bit challenging, Why? because we have to make more analysis and simulation to that process. we can used RISE concept and discuss  the option and list improvement that we  will take together with the owner of each process related. Remember discuss/brainstorming with process owner and other party it's key success to improve and remove this waste.

Step 3: Unnecessary Vs Value Added . This just can't happen.

Step 4: Necessary vs Value Added. Recommended. our main target/bull eye. 

Process or activity that listed on this quadrant are the main target than will give big impact to the whole process improvement. but remember don't rush to just doing in this quadrant before you do the step 1 and 2 activity.