Lean is a comprehensive process improvement methodology that focuses on eliminating waste so that all activities/steps add value from the customer’s perspective. A process is Lean if it uses only the absolute minimum of resources (man, machine, method and material) to add value to the product.

“Lean is much more than techniques. It is a way of thinking – a whole systems approach that creates culture in everyone in the organization to continuously improve their processes and production.” Management Expert, Jim P Womack.

Lean has evolved during the last hundred years as an approach to improving business operations. It started in manufacturing, however, now accepted and applied in office and services industries equally well.

Common Lean terms regarding value:

Value Added Work
Value added work is the work that results in a finished product. Value added activities change the form, fit or function of a product or service. Keep in mind that a customer is only willing to pay for value; if they feel that their money is being wasted as a result of insufficient processes, the customer will take his business elsewhere. Examples of Value added work:

• Assembling products, preparing engineering drawings, examining patients, processing customer deposits.

Non Value Added Work
Non-value added work, also called waste or MUDA, refers to work that doesn't add value to or is unnecessary for the overall project. The customer is not willing to pay for the non-value added work. Examples of non Value-added work:

• Walking to get tools for machining operation, waiting for customer specifications, getting to the doctor office, inspecting product.

Business Non Value Added Work

This work must be completed even if not value added to the customer. Examples of business non value added work includes regulatory and legal requirements.

In a typical process, non value added activities account for 95% of total lead time.

Bottom line, non value added work must be eliminated, reduced or simplified. I will talk more on the types of non value added work (waste) and the ways to eliminate waste in my future blogs.

If you have any Lean ideas to make your process better, please feel free to contact me at noman.husain2@comauinc.com.