Optimizing Lean Processes by Classifying Activity Types for Value Creation PPT
This PPT slide, part of the 105-slide Lean - Kanban Scheduling Systems PowerPoint presentation, presents a framework for understanding process activities within the context of Lean Management, categorizing them into 3 distinct types: Value-Adding, Non-Value Adding, and Business-Value Adding. Each category is defined by customer perceptions of value and the necessity of the activities involved.
Value-Adding activities are those for which customers are willing to pay. An example provided is assembly, which directly contributes to the final product and enhances customer satisfaction. This category is crucial for organizations aiming to optimize their processes and focus resources on activities that generate revenue.
Non-Value Adding activities, on the other hand, are identified as those that customers do not recognize as valuable and should ideally be eliminated. Rework is cited as a prime example, indicating inefficiencies that detract from the overall value proposition. Eliminating these activities can lead to significant improvements in operational efficiency and customer satisfaction.
The Business-Value Adding category includes activities that customers may not pay for directly, but are deemed necessary by the organization. Preventive maintenance is highlighted here, emphasizing that while these activities may not be directly valued by customers, they are essential for sustaining overall operational effectiveness.
The slide concludes with a noteworthy observation that many processes contain less than 20% value-adding activities. This statistic underscores the importance of assessing and refining processes to enhance overall efficiency and effectiveness. Organizations should consider this framework as a guide for identifying areas for improvement and reallocating resources to maximize value creation.
This slide is part of the Lean - Kanban Scheduling Systems PowerPoint presentation.
Developed by a Senior Executive and Operational Excellence Coach with experience at organizations including NOKIA, MICROVENTION, and MAGELLAN, this presentation provides a step-by-step approach to implementing Lean Kanban Systems.
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Kanban Scheduling Lean Management Value Proposition Customer Satisfaction Value Creation
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