Value added work is the actual work that a customer is willing to pay for. It can be described as the the activities that transform a product or service from one condition to another only if the customer is willing to pay for it and the activity is done correctly the first time through. With that said value added work has three defining characteristics:
Here is an example of a value added activity. Keep in mind that no process is 100% free of waste. John receives an order for a part he must machine. John begins machining his part and completes it correctly the first time through. This is seen as value added because the customer is willing to pay for it, the transformation occurred on the machine and he machined the part correctly the first time through. Let’s look at one more example. Martha requests some information from Dianne. Dianne gathers the necessary information and emails Martha. When Martha receives the information she is grateful. She reads through the email and is able to get all the information she needs to complete her task. This would be considered a value added email because Martha requested it, the email contained all the necessary information and it was performed correctly the first time.
Some activities can be difficult to determine whether they are value or not. If you are unsure as to what type of work the activity should be classified as, ask yourself the three questions shown below:
If any of your answers were a no, the activity can not be value added.
John receives a second order for parts he needs to machine. He begins machining the parts however one hole is undersized. Because it is undersized he can rework the hole. Is this activity still value added?
**Place answers in the comments tab below.**
Visual control refers to methods, devices, activities and or systems which are designed to assist in the management or control of our activities, processes, parts and or machines through visual and or other sensory means. Visual controls help to:
Visual Challenge - Watch the video below and share how many black pens you see. Then answer the question; Why was it so easy to see the black pens after the 5S?
Variance is the difference between what is expected and what is actually happening. In statistics variance is a measurement of dispersion of data.
Reference: Apics Dictionary, 2015.
* What are some examples of variance that you see each day?
Vendor Managed Inventory programs are a powerful way to leverage an organization's strengths and focus on your core competencies. Vendor Managed Inventory places the responsibility of selected services and or items on a chosen supplier. In most cases the supplier will handle all agreed upon aspects, Which would include:
The vision of an organization is a compelling image or inspirational description of what an organization would like to achieve or accomplish. It is a forward looking and inspirational idea of where you would like to be. The vision guides the decisions of the current and future activities of the organization.
What does a vision do?
The ABC's of