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Value Analysis involves assessing each process step through the eyes of the customer and determining whether the step is a Value Adding Activity (VA), a Non-Value Adding Activity (NVA) or a Value Enabling Activity (VE).
To be considered Value Adding (VA), the step must meet all of the three of the following criteria:
- The step transforms the item toward completion (something changes)
- The step is done right the first time (not a rework step)
- The customer cares (or would pay) for the step to be done
If a step fails to meet any one of these criteria, it is considered either:
- Non-Value Adding (NVA): Typical Non-Value Adding Activities include rework, inspection, movement and any of the 8 Wastes.
- Value Enabling (VE): These activities are considered NVA from a customer perspective but can be satisfying a regulatory/ compliance issue or other business requirement. These are also called Non-Value Added but Necessary, Business Value Add or Non-Value Added but Required.
Uncovering and reducing NVA or VE steps that don’t add value in they eyes of the customer is key to improving both the effectiveness and efficiency of a process.
Value Cycle Time Analysis Template
For a better understanding of Value Analysis and an overview of Lean Six Sigma, check out our Free Lean Six Sigma Yellow Belt Training, Green Belt Training, or Lean Training.