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Definition of Value-added

Definition of Value-added. Value Added Any activity that increases the market form or function of the product or service. These are activities the customer is willing to pay for . Non Value-added Any activity that does not add market form or function or is not necessary .

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Definition of Value-added

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  1. Definition of Value-added Value Added Any activity that increases the market formor function of the product or service. These are activities the customer is willing to pay for. Non Value-added Any activity that does not add market form or function or is not necessary. These activities should be eliminated, simplified, reduced, or integrated.

  2. Lean = Eliminating the 8 Wastes Typically 95% of Total Lead Time is Non-Value Added!!! RUN TIME Order Processing, Transport, Storage, Waiting, Rework, Machine Setup, Inspection, Machine Breakdowns, etc... Total Lead Time

  3. Lean = Eliminating the 8 Wastes • Defects • Overproduction • Waiting • Non Value-added Processing • Transportation of Part/Materials/Tooling • Inventory in Excess • Motion in Excess • Employees that are underutilized

  4. Lean Building Blocks Continuous Improvement Pull/Kanban Cellular/Flow TPM Quality at Source POUS Quick Changeover Standardized Work Batch Reduction Teams Value Stream Mapping 5S System Visual Plant Layout

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