VA / NVA activities Jeffrey Linker stated that lean is a principle of production manufacturing by reducing process time and eliminating all wastes for adding more value added into the whole process. The most effective way to reduce costs while keeping up with the competition is to become “Lean” by reducing or eliminating waste. Womack and Jones define waste as any activity that does not add value to the product as defined by the customer. In Lean perspective, every activity is categorized as either a Value Added (VA) or Non-Value Added (NVA) activity. However, it should be noted that even some perceived NVA activities which may be necessary to comply with certain requirements. Such activities are termed as Essential Non-Value Added (ENVA) activities. Figure 1 illustrates the various categories of activities
Critical stating point of lean thinking is value. value can only be defined by the ultimate customer. Value can be expressed in term of specific a product (a good or a service) which meets the customer’s needs at a specific price at a specific time.
Value can simply be defined as something a customer is willing to pay to receive. If a customer is not willing to pay for it, then there is no value.
Example-1, A book sellers charging extra 10% for Hardcover than paperback cover but most customer not wailing pay this extra 10% cost which no value for them.
Example:- A watch manufacturing company pricing 100% more to a basic design watch with attracting design with platinum coating and most of customers like the new design watch and willing to pay even more than company price due to its limited edition. This is value.
Value Added vs. Non-Value Added – The Seven Wastes( Muda)
Lean manufacturing principles divide waste into seven classic categories. The Japanese word muda means “waste”.
- Muda of Overproduction
- Muda of Excessive inventory
- Muda of Waiting (idle) times
- Muda of Excessive motion
- Muda of Transportation
- Muda of Overprocessing
- Muda of Defects (Rejections / reworks)
Others Waste includes:-
- Muda of Time
- Muda of creativity (underutilization of peoples talents, skill & knowledge)
- Which Muda is cause of all mudas?
Ans:- Tips– Production that is more than needed or before it is needed.
- What is the cause of Muda?
Ans:- Company policy.