Value added analysis seeks to evaluate a process or value stream and identify those elements that benefit the final product or service being delivered. The analysis isolates the activities that, in the eyes of the customer, actually add value to the product or service. The remaining non-value adding activities (i.e., waste) are targeted for extinction.
A wide array of value analysis tools and techniques are available. Many of them combine visualization through mapping (process map, value stream map, functional map, etc.) and metrics or quantification of things like time (cycle time, process time, value added time, lead time, etc.) and quality (yield, rework, variation, etc.)
« Back to Glossary Index