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Value Added Analysis Chapter 4

Lean Six Sigma Certification Series. Value Added Analysis Chapter 4. DM A IC – Analyzing the Baseline. DM A IC – Analyzing the Baseline. Value Added

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Value Added Analysis Chapter 4

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  1. Lean Six Sigma Certification Series Value Added Analysis Chapter 4

  2. DMAIC – Analyzing the Baseline

  3. DMAIC – Analyzing the Baseline • Value Added Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as directly related to the production of the product or service which will meet/satisfy their need. You can ask the question “Is this something that the customer is willing to pay for?”

  4. DMAIC – Analyzing the Baseline • Non Value Added Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as NOT directly related to the production of the product or service which will meet/satisfy their need. You can ask the question “Is this something that the customer is NOT willing to pay for?”

  5. DMAIC – Analyzing the Baseline • Business Non Value Added Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as NOT directly related to the production of the product or service which will meet/satisfy their need, but are considered important to another stakeholder of the process (many times they are represented in the Controls on the process model). Examples: OSHA, Environmental and other Regulatory compliance, managing employee pay, facilities management, in-house staff training, audit trail, etc.

  6. Can eliminate without impacting customer? Non-value added Required by a Control? Can control be eliminated? Yes Yes Yes No No No Yes Customer request? Yes Eliminate if preceding activity done correctly? Yes No Impact internal customer? Yes No Value Added No Improving internal efficiency Necessary Yes No Non-value added Non-mandatory DMAIC – Analyzing the Baseline Value Added Analysis

  7. DMAIC – Analyzing the Baseline Value Added Analysis

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