Understanding Lean Management: Process Activity Types PPT

This PPT slide, part of the 123-slide Lean - 5S Visual Workplace Organization PowerPoint presentation, presents a framework for understanding process activities within the context of Lean Management. It categorizes activities into 3 distinct types: Value-Added, Business-Value Added, and Non-Value Added. Each category is defined by the customer's willingness to pay for the activities involved.

Value-Added activities are those for which customers are willing to pay, such as assembly. This indicates that these activities directly contribute to the product or service that the customer values. In contrast, Non-Value Added activities are those that customers do not see as beneficial and should ideally be eliminated. An example provided is rework, which often represents inefficiencies in the process.

The Business-Value Added category sits between the other two. It encompasses activities that customers may not directly pay for, but are deemed necessary by the organization, like preventive maintenance. This suggests a recognition that some activities, while not directly valued by customers, are essential for maintaining overall operational integrity.

A critical insight from the slide is the observation that many processes contain less than 20% value-added activities. This statistic highlights a significant opportunity for organizations to streamline operations and enhance efficiency by focusing on eliminating or reducing Non-Value Added activities. By doing so, companies can improve their overall value proposition and better align their processes with customer expectations. This slide serves as a valuable tool for organizations aiming to implement Lean principles effectively.

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Lean Management 5S Visual Workplace Value Proposition Workplace Organization