In this article, you will learn what are value-added activities and why it is important to get new customers and retain the existing ones using lean manufacturing techniques.
Value-Added Activities Definition
Value-Adding activities are any action or operation that increases the value and interest of the customer.
It considers the three criteria to be considered as a Value-Adding Activity.
How to Identify Value-Added Activities in 3 Steps.
The three criteria to identify a Value-Adding Activity are:
(1) The activity transforms the item toward completion in the fastest and cheapest way;
(2) The activity is done right the first time (not a rework step);
(3) The customer cares (or would pay) for the activity to be done.
Why are Important the Value-Added Activities
Since, a value-added activity is any action taken that increases the attention, benefits, and use of a product or service to the customer, it is a competitive advantage for any manufacturer to make their products more desirable.
All actions that your company is doing either add value or do not add value to the goods and services that they sell. The client is who determines whether the manufacturer’s activities add value or not.
It is important is to focus on value-added activities to take competitive advantage to get new customers, equal importance is to prevent involvement in non-value-added activities.
How to Avoid Non-Value Added Activities
– The Eight Wastes according to Lean Manufacturing
Most of the non-value activities are related to the eight wastes described in the Lean manufacturing principles:
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REFERENCES: Value-Added Activities.