Definition of Value-Added:
To be a value-added action, the action must meet all three of the following criteria:
- The customer is willing to pay for this activity.
- It must be done right the first time.
- The action must somehow change the product or service in some manner.
You will need to look for the “7 elements of waste” and when categorizing need to break out your % split into: % True Value-Added, % True Non-Value-Added, and % Necessary Waste (i.e., legal requirement).
If your processes are typical then the %VA will be less than 5%.« Back to Dictionary Index