Difference between waste and value-added activities
Value added activities: Any activity which add value to the product in terms of material, function, utility, shape etc. is a value-add activity and those which does not directly contribute to the overall value of the product is a non-value add activity Examples
1. Assembly of an engines to aircraft carrier is a value-added activity
2. Increasing the memory from 64 gigs to 128 or 256 gigs in new iPhone is a value adding
Waste activities: nonvalue-added activities are those activities that don’t directly add value to the product, but it enables delivering value for the customer.
1. Adding labels for a product like bar codes or QR codes does not increase value of the product but …show more content…
This type of waste is necessary for an organization to perform its operations. Logistics and material handling does not add any valued to the product. But, products can’t be delivered without logistics
3. Increase the cost due to quality or coat inadequacy. A manufacturing plant must produce 100 mm of wooden board but instead, it produces 105 mm of wooden board. This waste makes the unit price of wooden board high
4. Exhausting of provided resources gives poor performance. The lathe machine needs to get break after every 2hr of work. If not, that would lead to wear and tear of the tools in the lathe machine
Seven categories of waste in an organization
1. Overproduction
Producing more than the required demand increases the holding cost, man power and inventory
2. Over processing
Unnecessary processing of the same product increases labor cost and inventory cost
3. Waiting (idle) time
Not utilizing of resources during the working hours is a waste
4. Transportation (Excess motion)
Materials transporting within the company may lead to get damaged , waste of time and left unprocessed during this transportation
5. Defects
Defected or damaged products need rework, time and additional resources
6. Excess …show more content…
This is particularly useful when attempting to lessen process time, since you pick up understanding into the basic leadership stream notwithstanding the procedure stream. It is a Lean tool.
Exercise 6
Lean fundamentals of inventory control and flow on a manufacturing facility
In inventory control, helps not only to stockroom the house with what the customers might need, but also remove excess stuff and retain only what to be used for a particular time frame. Just in time helps to waste in time and inventory costs.
Flow allows increase in the throughput along with quality and customer satisfaction and explains clearly from first step to last step. Here in manufacturing facility, flow would be smoother depending on the customers demand and supplier’s frequency of supply.
By noting down what all the inventory we got and cross checking with the future orders, and getting orders at required timings and avoiding over inventory, makes the facility to manufacture the product with lesser or no wait to the