M4E #77: What is Value in Lean? Value Added vs Non-Value Added Work
Long time has passed since M4E #2, when we first introduced the concept of waste in lean manufacturing. If you have not seen that video or you want to refresh old concepts, I highly encourage watching it before the following video from LeanSmarts that talks about Value Added vs Non Value Added work. Check them up!
Time for Insights
Value Added is often abbreviated as VA and Non-Value Added as NVA. There is a third additional term that is known as NNVA that means Necessary but Non-Value Added work. Such tasks don't directly enhance the value of the product or service, and customers aren't inclined to pay for them. However, they're essential for operational processes. Although considered as waste, these tasks are often mandated by technology, regulations, or perceived necessity. In manufacturing, examples of these non-value adding activities include inspection, measuring, and material movement.
It’s easy to define VA activities as those where “the customer is willing to pay”, but you have to be really careful with that thought. You may think that you are doing something that they don’t really want, so it’s quite important to know their needs really well.
One way to analyse how VA and NVA is by using tools such as Value Stream Mapping (VSM). I won’t make additional comments on this as we’re going to see it in a following video soon :)