Optimizing Process Activities in Value-Based Lean Management PPT

This PPT slide, part of the 157-slide Lean - Value Stream Mapping (VSM) PowerPoint presentation, presents a framework for understanding process activities within the context of Lean Management. It categorizes activities into 3 distinct types: Value-Added, Non-Value Added, and Business-Value Added. Each category is defined by customer perception and organizational necessity.

Value-Added activities are those for which customers are willing to pay. These are essential tasks that directly contribute to the product or service, such as assembly. The implication here is clear: organizations should focus on maximizing these activities to enhance customer satisfaction and drive revenue.

Non-Value Added activities, on the other hand, are those that customers do not want to pay for and should ideally be eliminated. An example given is rework, which not only wastes resources, but also detracts from the overall efficiency of operations. The slide emphasizes the importance of identifying and minimizing these activities to streamline processes.

The third category, Business-Value Added, includes activities that customers may not pay for directly, but are deemed necessary by the organization. Preventive maintenance is cited as an example. While these activities do not directly generate revenue, they are crucial for sustaining operational effectiveness and ensuring long-term value delivery.

A noteworthy observation from the slide is that many processes contain less than 20% of value-added activities. This statistic highlights a significant opportunity for organizations to reassess their processes, eliminate waste, and enhance overall efficiency. By focusing on these insights, executives can drive strategic initiatives that align with Lean principles and improve operational performance.

This slide is part of the Lean - Value Stream Mapping (VSM) PowerPoint presentation.

Developed by a Senior Executive and Operational Excellence Coach with experience at organizations including NOKIA, MICROVENTION, and MAGELLAN, this is a presentation and templates for planning and performing a Value Stream Mapping Event.

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