What is Value-Add and How Does it Impact Efficiency?

Mary explains the meaning of “value-add.” The criteria are:

  1. The customer is willing to pay for it
  2. The process, object, or service has to be physically changed
  3. The process, object, or service is done right the first time

In this podcast, she also shares eight common areas for waste and provides examples of each. They are:

  1. Defects
  2. Overproduction
  3. Waiting
  4. Non-utilized talent
  5. Transportation
  6. Inventory
  7. Motion
  8. Extra processing

This podcast is also available as an article: What is Value-Add and How Does It Impact Efficiency?

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