Value-Added Activity Identification

What if 80% of your work doesn’t even matter to your customer? In Lean, the ultimate goal is to create value for the customer. Yet, many processes are cluttered with activities that don’t contribute to that value. By breaking work down into Value-Add (VA) 🟢 , Non-Value Add (NVA) 🔴 , and Necessary Non-Value Add (NNVA) 🟡 activities, you can focus your efforts on what truly matters—and eliminate the rest. 1️⃣ Value-Add (VA) 🟢 These are the steps that directly enhance your product or service, the ones your customers are willing to pay for. Examples: - Machining a precision component - Assembling a product to customer specifications - Final quality checks that ensure reliability Why It Matters: - Directly increases customer satisfaction and product value - Drives revenue by focusing on what customers actually care about 2️⃣ Non-Value Add (NVA) 🔴 These are activities that do nothing to enhance the product or service, often just adding cost and delay. Examples: - Excessive material movement - Redundant inspections - Overprocessing steps that don’t improve quality Why It Matters: - Eliminating these wastes frees up time and resources - Streamlining processes leads to faster delivery and lower costs 3️⃣ Necessary Non-Value Add (NNVA) 🟡 - Some tasks don’t add direct value but are essential for safety, compliance, or technical reasons. Examples: - Mandatory regulatory inspections - Safety checks - Some administrative processes Why It Matters: - While these activities can’t be eliminated, they can often be optimized or minimized - Improving their efficiency reduces overall waste without compromising quality or compliance

🛡 Be the Value Guard: Protect What Truly Matters in Your Process In every organization, there is one responsibility that should never be outsourced or forgotten: guarding value. Every day, our teams spend time, effort, and energy on tasks that may feel important, however in reality, do not move value forward. That’s why Lean asks us to always stop and reflect: 👉 Is this step value-added or non-value-added? Who is the Value Guard? The “Value Guard” is not a person with a special title. It’s a mindset and a role we all share. • Value Guards are the people who speak up when they see waste. • They are the ones asking: Does this really help the customer? • They protect the team’s time and energy from being consumed by non-value-added work. Without someone guarding value, waste creeps in quietly, through unnecessary approvals, endless waiting, excess transport, or rework. Why Guarding Value Matters Most processes today are made up of only 5–10% value-added steps. The rest is non-value-added, consuming resources without adding to the customer’s experience. If we don’t actively guard against it: • Teams get stuck firefighting. • Customers wait longer. • Motivation drops because people feel their work has no impact. Being a Value Guard means making the invisible visible, surfacing the non-value-added activities that everyone knows exist, but few take the time to challenge. A Simple Warehouse Example Think about a logistics process: • Value-added steps: Picking an order, packing a shipment, loading the truck. • Non-value-added steps: Waiting at staging areas, searching for missing items, transporting pallets back and forth, fixing errors, or filling out duplicate reports. If we measured the timeline honestly, the value-added part would be only a small slice. The rest is waste. The role of a Value Guard is to shine a light on that imbalance and ask: 💡 What can we reduce, remove, or redesign so more of our time goes to true value? How to Become a Value Guard 1. See waste clearly → Map the process, measure lead time, expose waiting and rework. 2. Ask the customer question → Would the customer pay for this step? 3. Challenge the “normal” → Just because a step exists doesn’t mean it adds value. 4. Encourage the team → Value guarding is not about blame, but about improvement. Being a Value Guard is not about perfection. It’s about progress. Every time you protect your process from waste, you make space for: • Faster delivery. • Better quality. • More engaged teams. So the next time you’re in a meeting, a warehouse, or a workshop, production, put on your metaphorical hard hat and ask yourself: 👉 𝘈𝘮 𝘐 𝘨𝘶𝘢𝘳𝘥𝘪𝘯𝘨 𝘷𝘢𝘭𝘶𝘦, 𝘰𝘳 𝘢𝘮 𝘐 𝘭𝘦𝘵𝘵𝘪𝘯𝘨 𝘸𝘢𝘴𝘵𝘦 𝘴𝘭𝘪𝘱 𝘵𝘩𝘳𝘰𝘶𝘨𝘩? 𝘓𝘦𝘢𝘯 𝘪𝘴 𝘯𝘰𝘵 𝘫𝘶𝘴𝘵 𝘢𝘣𝘰𝘶𝘵 𝘴𝘰𝘭𝘷𝘪𝘯𝘨 𝘱𝘳𝘰𝘣𝘭𝘦𝘮𝘴, 𝘪𝘵’𝘴 𝘢𝘣𝘰𝘶𝘵 𝘱𝘳𝘰𝘵𝘦𝘤𝘵𝘪𝘯𝘨 𝘸𝘩𝘢𝘵 𝘵𝘳𝘶𝘭𝘺 𝘮𝘢𝘵𝘵𝘦𝘳𝘴: 𝘷𝘢𝘭𝘶𝘦 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳. #LeanbyAkijun #Lean #Value #AkiJun

𝐕𝐚𝐥𝐮𝐞 𝐒𝐭𝐫𝐞𝐚𝐦 𝐌𝐚𝐩𝐩𝐢𝐧𝐠 & 𝐭𝐡𝐞 95% 𝐖𝐞 𝐈𝐠𝐧𝐨𝐫𝐞 📦 𝑯𝒐𝒘 𝒎𝒖𝒄𝒉 𝒐𝒇 𝒚𝒐𝒖𝒓 𝒑𝒓𝒐𝒄𝒆𝒔𝒔 𝒂𝒄𝒕𝒖𝒂𝒍𝒍𝒚 𝒂𝒅𝒅𝒔 𝒗𝒂𝒍𝒖𝒆? If you said “most of it” — think again. According to Lean studies, less than 5% of total lead time is truly value-added. The rest? It’s waiting, rework, overprocessing, and delays. This is where Value Stream Mapping (VSM) becomes a game-changer. 🔍 𝐕𝐒𝐌 𝐡𝐞𝐥𝐩𝐬 𝐲𝐨𝐮: • Visualize every step in your process • Separate value-added (VA) from non-value-added (NVA) activities • Highlight inventory buildup, downtime, and bottlenecks • Design a future state that flows with purpose It’s not just for manufacturing — it works in healthcare, software, logistics, and beyond. 💬𝘞𝘩𝘢𝘵’𝘴 𝘰𝘯𝘦 𝘴𝘵𝘦𝘱 𝘪𝘯 𝘺𝘰𝘶𝘳 𝘱𝘳𝘰𝘤𝘦𝘴𝘴 𝘵𝘩𝘢𝘵 𝘧𝘦𝘦𝘭𝘴 𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘪𝘷𝘦 — 𝘣𝘶𝘵 𝘥𝘰𝘦𝘴𝘯’𝘵 𝘢𝘤𝘵𝘶𝘢𝘭𝘭𝘺 𝘢𝘥𝘥 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳 𝘷𝘢𝘭𝘶𝘦? ✍️ 𝐇𝐨𝐰 𝐭𝐨 𝐂𝐫𝐞𝐚𝐭𝐞 𝐚 𝐕𝐒𝐌 (𝐒𝐭𝐞𝐩-𝐛𝐲-𝐒𝐭𝐞𝐩) 🔴 𝑺𝒕𝒆𝒑 1: Choose Product Family or Service Focus on one flow at a time. 🔵 𝑺𝒕𝒆𝒑 2: Map the Current State Draw the actual steps as they exist — even if messy or inefficient. 🟢 𝑺𝒕𝒆𝒑 3: Identify Waste Look for: • Overproduction • Waiting time • Transport • Excess inventory • Rework/defects 🟣 𝑺𝒕𝒆𝒑 4: Define the Future State Design an optimized flow with reduced waste, improved takt alignment, and smoother information control. 🟠 𝑺𝒕𝒆𝒑 5 : Build an Action Plan Use Kaizen bursts to prioritize improvements. ________________________________________ 🧠 𝐑𝐞𝐚𝐥-𝐖𝐨𝐫𝐥𝐝 𝐄𝐱𝐚𝐦𝐩𝐥𝐞: 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 Scenario: • Monthly demand: 5,000 units • Process: Raw material → Cutting → Welding → Painting → Assembly → Packing • Bottleneck: Painting (batch-based, slow drying) • Lead Time: 14 days • Value-Added Time: Only 3.5 hours! Future State Goals: • Move to continuous flow • Reduce WIP between welding and painting • Implement Kanban signals ________________________________________ 🎯 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐕𝐒𝐌: 🕒 Lead Time - Decreases significantly 🔄 Flexibility - Increases process adaptability 🔍 Transparency - Makes hidden problems visible 🤝 Collaboration - Improves team alignment 💰 Cost - Reduces waste, saves money ________________________________________ ❓ 𝐅𝐀𝐐 𝐐: 𝐈𝐬 𝐕𝐒𝐌 𝐨𝐧𝐥𝐲 𝐟𝐨𝐫 𝐦𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠? 𝐀: 𝐍𝐨! 𝐕𝐒𝐌 𝐢𝐬 𝐮𝐬𝐞𝐝 𝐢𝐧 𝐬𝐨𝐟𝐭𝐰𝐚𝐫𝐞 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭, 𝐡𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞, 𝐥𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬, 𝐚𝐧𝐝 𝐦𝐨𝐫𝐞. 𝐐: 𝐇𝐨𝐰 𝐨𝐟𝐭𝐞𝐧 𝐬𝐡𝐨𝐮𝐥𝐝 𝐰𝐞 𝐮𝐩𝐝𝐚𝐭𝐞 𝐚 𝐕𝐒𝐌? 𝐀: 𝐄𝐯𝐞𝐫𝐲 6–12 𝐦𝐨𝐧𝐭𝐡𝐬 𝐨𝐫 𝐰𝐡𝐞𝐧 𝐦𝐚𝐣𝐨𝐫 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐨𝐜𝐜𝐮𝐫. 𝐐: 𝐖𝐡𝐨 𝐬𝐡𝐨𝐮𝐥𝐝 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐞? 𝐀: 𝐀 𝐜𝐫𝐨𝐬𝐬-𝐟𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥 𝐭𝐞𝐚𝐦: 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧, 𝐪𝐮𝐚𝐥𝐢𝐭𝐲, 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠, 𝐥𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬, 𝐚𝐧𝐝 𝐞𝐯𝐞𝐧 𝐟𝐢𝐧𝐚𝐧𝐜𝐞.

Are you an emergency room doctor for your business? You race from one urgent fire to the next, treating every symptom but never curing the disease. The truth is, many founders (the brilliant minds behind the vision)end up trapped in the very operations they created. I know because I used to be one of them. Here's an exercise I use with fractional COO clients that I call the Deep Impact Audit: 𝗧𝗵𝗲 𝗣𝗿𝗼𝗰𝗲𝘀𝘀: 1. List your top 3 highest-value activities (only you can do) 2. Calculate hours spent on each this week 3. Identify what prevented more time on #1 When I did this exercise on myself one, my total high-value work: 15 hours out of 55. 𝗧𝗵𝗲 𝗣𝗿𝗼𝗯𝗹𝗲𝗺: 40 hours on "urgent" operational tasks that others could handle with proper systems. 𝗧𝗵𝗲 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: Systematically designed 27 of those 40 hours into team-owned processes. Result: More hours weekly on strategic work = significant additional value. 𝗧𝗵𝗲 𝗜𝗻𝘀𝗶𝗴𝗵𝘁: Most founders spend 20% of time on highest value, 80% on "urgent" operations. This isn't time management. This is architectural failure. 𝗬𝗼𝘂𝗿 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲: If you can't identify your top 3 highest-value activities, you're not leading—you're reacting. #TakeAction #DeepImpact #StrategicFocus #FractionalCOO #ValueAudit

Value Chain Analysis is a process that helps businesses understand how value is created and captured from each product’s initial conception through to its end use and beyond. The goal of Value Chain Analysis is to identify ways to improve the efficiency and effectiveness of the supply chain by optimizing the flow of goods, services, and information. It comprises five primary activities and four support activities as illustrated in the diagram. There are three steps in Value Chain Analysis: 1. Identify the activities that create value for customers. This includes all the activities from initial research and design to production, marketing, and delivery. You should also consider the customer’s perception of value and any unique selling points. 2. Determine how much value each activity creates. This can be done by estimating the cost of performing each activity and then subtracting the cost savings generated by performing it more efficiently or effectively. 3. Identify ways to improve the efficiency and effectiveness of each activity. This may include streamlining processes, reducing waste, or finding new ways to add value for customers. By performing these three steps across each of the primary and support activities, CFOs can determine which activities create the most value versus those that should be discontinued.

Process Cycle Efficiency (PCE) is a metric used to measure the efficiency of a process by evaluating the value-added time in the process compared to the total process time. It assesses the effectiveness of a process in terms of minimizing waste and maximizing value. To calculate Process Cycle Efficiency, you need two key pieces of information: Total Process Time (TPT) and Value-Added Time (VAT). Total Process Time (TPT) refers to the total time it takes for a process to be completed, which includes both value-added and non-value-added activities. Value-Added Time (VAT) represents the time spent on activities that directly contribute to adding value to the product or service from the customer's perspective. These are the activities that customers are willing to pay for. The formula for calculating Process Cycle Efficiency is: Process Cycle Efficiency (PCE) = (Value-Added Time / Total Process Time) * 100 Let's consider a manufacturing process that involves eight steps: Step 1: Material Preparation - 10 minutes Step 2: Cutting - 20 minutes Step 3: Shaping - 15 minutes Step 4: Assembling - 30 minutes Step 5: Painting - 25 minutes Step 6: Quality Inspection - 5 minutes Step 7: Packaging - 15 minutes Step 8: Shipping - 10 minutes To calculate Total Process Time (TPT), simply sum up the individual times: TPT = 10 + 20 + 15 + 30 + 25 + 5 + 15 + 10 = 120 minutes Now, let's identify the value-added steps in the process. In this example, value-added steps are considered to be Cutting, Shaping, Assembling, and Packaging: VAT = 20 + 15 + 30 + 15 = 80 minutes Using the given formula, we can calculate Process Cycle Efficiency (PCE): PCE = (80 / 120) * 100 = 66.67% Therefore, the Process Cycle Efficiency for this manufacturing process is 66.67%. Let's consider an example from the service industry, specifically a customer support process. In this scenario, the customer support process consists of six steps: Step 1: Receiving and registering customer inquiries - 5 minutes Step 2: Initial assessment of the inquiry - 10 minutes Step 3: Conducting troubleshooting or investigation - 30 minutes Step 4: Providing a solution or recommendation - 15 minutes Step 5: Documenting and updating the customer's case - 5 minutes Step 6: Closing the case and following up with the customer - 10 minutes To calculate Total Process Time (TPT), we sum up the individual times: TPT = 5 + 10 + 30 + 15 + 5 + 10 = 75 minutes Now, let's determine the value-added steps in the process. In this example, the value-added steps are considered to be Steps 3 (troubleshooting or investigation) and Step 4 (providing a solution or recommendation): VAT = 30 + 15 = 45 minutes Using the given formula, we can calculate Process Cycle Efficiency (PCE): PCE = (45 / 75) * 100 = 60% Therefore, the Process Cycle Efficiency for this customer support process is 60%. #qualityassurance #leansixsigmablackbelt #leanmanufacturing #processexcellence #operationalexcellence #businessexcellence

Value Stream Mapping activity done with stick-notes A Value Stream Map (VSM) is a great tool in your Lean journey but sometimes can be difficult to know where to start and to get buy-in from all stakeholders. Primarily a VSM outlines the critical steps (both material & information) in a process (value stream) from start (Supplier) to finish (Customer) together with the processing time, processing rate, volume, inventory & staff involved. It highlights the bottleneck/restrictions or waste so that improvement effort can be applied in the most needed areas. The ultimate outcome is better value to the Customer (reducing waste and increasing the Value proportion). I’ve used a simple activity when introducing VSM, that can be a great entry point, the colour of the sticky-notes is one of the keys: 1.      Assemble your team, agree on the scope & the intended outcome. 2.      Step out the process using stick-notes (noting the process owner), determine if the steps are Non-Value Add (pink sticky-notes), Business-Value-Add (light blue) or Value-Add (light green-shown also with a tick). 3.      Determine the step process time (the time to complete that step-shown in dark green) 4.      Included the wait or delay time between steps (red sticky-notes) 5.      Finally highlight the wasteful areas that could be targeted for improvement (red cross) 6.      Adding up all the dark green and red sticky-notes provides the total lead time. The real Value to the Customer is calculated by the Value-Add time (light green) divided by the total lead time. The higher the proportion, the better customer focus. 7.      Then you can transfer the sticky-note map onto a VSM diagram If you’ve read my posts, you’ll know that I like to start simple. In the comments is a link to a bit more information on Process Mapping & VSMs. See a link in the comments to further information of VSMs & Process mapping.

Not all work creates value. Some of it only creates activity. This simple breakdown helps clarify a concept that drives Lean improvement: Value-Added (VA) Work the customer is willing to pay for. It directly transforms the product or service. Business-Value-Added (BVA) Work the business needs to function, but the customer does not see or request. Necessary, but should be minimized. Non-Value-Added (NVA) Pure waste. It adds no value to the customer or the business and should be eliminated. Many organizations spend most of their time in BVA and NVA without realizing it. Lean improvement starts when teams learn to separate value from activity. Before improving a process, ask one question: Would the customer pay for this step if they could see it? Which category dominates your process today? #QualityGurus

Value Stream Mapping (VSM) is a Lean tool used to visualize, analyze and improve the flow of materials and information required to deliver a product or service to a customer. It helps identify waste, reduce process inefficiencies, and design a future state that adds more value with less effort. What Is a Value Stream? A value stream includes all the actions (both value-adding and non-value-adding) required to bring a product or service from concept to customer: Material Flow (e.g., raw materials to finished goods) Information Flow (e.g., order entry to delivery) Purpose of Value Stream Mapping Identify waste (muda) in the process Visualize end-to-end process flow Align cross-functional teams on improvement opportunities Develop a "future state" map for improvement Serve as a baseline for continuous improvement Key Components of a Value Stream Map 1. Customer Requirements: Positioned at the top right and shows what the customer needs (volume, frequency, mix) 2. Process Steps: Shown as boxes across the middle of the map and each box represents a key process (e.g., assembly, packaging, inspection) 3. Material Flow: Arrows connecting process boxes (left to right) and Includes transport, inventory, and delays 4. Information Flow: Dashed lines from production control to processes and shows communication systems (ERP, schedules, Kanban) 5. Timeline (Process Data Box), Each step includes: Cycle Time (CT): Time to complete the process Changeover Time (C/O): Time to switch products Uptime: Machine reliability First Pass Yield (FPY): % of good units first try Inventory: Between steps 6. Timeline Bar (Bottom of Map) Splits value-added time vs non-value-added (waste) time Exposes bottlenecks, delays, and areas to improve Steps to Create a Value Stream Map 1. Select the Product or Service Family: Choose a single product or service line that shares common processes. 2. Define the Scope: Decide start and end points (e.g., from order to delivery or raw material to customer). 3. Walk the Gemba (Go to the Worksite): Observe actual operations, don’t rely on assumptions. 4. Create the Current State Map: Document each process step, process data (cycle times, yields, WIP), flow of materials and information 5. Analyze for Waste, Look for: Overproduction, Waiting, Transport, Over-processing, Inventory, Motion & Defects 6. Design the Future State Map: Propose improvements: Pull system or Kanban, Balanced flow,Takt time alignment Reduced WIP 7. Develop an Action Plan: Include timelines, owners and Kaizen events to realize the future state, best practices, map with a cross-functional team, use Post-its or magnets for flexibility, use standard icons (Lean VSM symbols), create both current and future state maps, apply PDCA (Plan-Do-Check-Act) for implementation Output of VSM: Clear view of end-to-end operations, data-driven improvement targets, basis for Lean initiatives (like Kaizen, SMED, 5S), enhanced collaboration across silos

Most businesses don’t realize it—but the majority of what they do is waste. That’s right. When you break down most processes, a surprising amount of time, effort, and cost go into activities that don’t add value to the customer. This is where Lean steps in to deliver its greatest impact: helping you eliminate what’s unnecessary and focus on what truly matters. Understanding Value-Add vs. Non-Value Add 1️⃣ Value-Add (VA): These are the activities your customer is willing to pay for because they directly contribute to the final product or service. Example: Machining parts to specification, assembling components, or painting a car—all directly improve the product or experience. Key Question: Would the customer pay extra for this step? If yes, it’s value-added. 2️⃣ Non-Value Add (NVA): These are the activities that consume resources without creating value. Most processes are full of them—and this is where the hidden costs are buried. Examples of NVA Waste: • Transporting parts unnecessarily. • Operators waiting for materials or approvals. • Moving documents from one department to another. • Fixing defects or reworking products. The Shocking Reality: Most Work Is Non-Value Add Studies in manufacturing, logistics, and office environments consistently show that 60-80% of activities in many businesses are non-value added. This includes: • Waiting for instructions, tools, or approvals. • Overproducing to meet batch requirements. • Walking across the plant floor to retrieve materials. • Performing excessive quality checks or inspections. If you’re spending more time moving, waiting, or fixing things than building or improving products, you’re losing money. How Lean Provides Value: 1️⃣ Waste Identification (TIMWOODS) Lean focuses on the 8 wastes (Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects, and Skills). By identifying these wastes, you can target and remove activities that don’t create value. 2️⃣ Streamlining Necessary Processes Not all NVA activities can be eliminated (e.g., machine setup or regulatory inspections). But Lean focuses on reducing the time and cost of these tasks through tools like SMED and visual management. 3️⃣ Shift to Continuous Improvement (Kaizen) Lean empowers your teams to continuously identify and improve processes, reducing waste at every level and redirecting efforts toward value-add work. Example of Lean in Action: A manufacturing company producing automotive parts found that 70% of their production time was spent on non-value activities like moving materials and waiting for approvals. By applying Lean principles: • They reduced material transport by 40%, saving 2 hours per shift. • Implemented standardized work, cutting setup time by 30%. • Result: Annual savings of $250,000 and a 15% increase in production efficiency.