Sep 8, 2008

Value-added (VA) and non-value-added (NVA) - 1

This is the first concept and is the most important concept of lean manufacturing because many activities of improvement are based on this concept. If we can not fully understand and identify which process or action is NVA. Nothing can be improved in Kaizen event.

VA and NVA, which has a special lean definition. An activity is "value added" if, and only if, these three conditions are met:

1. The customer must be willing to pay for the activity
2. The activity must change the "form, fit, or function" of the product (physical change), making it closer to the end product that the customer wants and will pay for.
3. The activity must be done right the first time (in good quality, rework process is not a VA process).

I give an easy example for your reference, COOKING STEAK.

The process flow of cooking steak is below, (1) take out steak from refrigerator, (2) unfreeze, (3) prepare stove, (4) put butter on the pan and heat, (5) cook steak, (6) put the steak on dish, (7) put the dish in front of you.

What is the customer requirement? They want a cooked steak only. What are the VA processes? According to customer requirement (remember that the VA process only identified according to customer requirement), the VA process are only (4) and (5). For the others, they are all NVA process. Customer only wants a cooked steak for eat, they don't care how you prepare to cook and how do you handle it after cook. They just want a cooked steak place in front of them, and that’s it.

Off cause, without the non-value-added (NVA) process, the steak can not be cooked. Therefore, we also classified the NVA process to necessary NVA and non-necessary NVA. Let discuss that in next topic.

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