What Is VALUE?

Value could mean different things to different people. But in Lean, it is very specific, clear and unambiguous.?

In any activity or transaction there is an input, some processing and an output. Through the process, we transform the input to an output that is seen as valuable by the customer. Thus, Value is centered around processes. This is the first point to note.?

A process is a sequential set of activities. It is generally assumed that each of the activities is a must for the process to be properly completed. And it is taken for granted that each activity must be done. Sometimes, this is not necessarily correct. Thanks to Lean thinkers, we are able to dissect and discern each activity to such an extent that we can fairly decide whether or not that activity is useful, essential or can be avoided.?

In Lean thinking, all processes are classified into one of three categories:?

1) Value Adding Activities

2) Non Value Adding but Value Enabling Activities

3) Non Value Adding Activities?

Value Adding Activities are the only activities that matter most. Lean thinking is very clear about what constitutes Value Addition. These are three fundamental, unshakeable pillars:?

a)?????Change in Form, Fit, Function – at least one of them must change during the activity.

b)?????Do It Right The First Time.

c)?????The Customer is paying for it.?

Non Value Adding but Essential Activities are those activities that cannot be avoided at all. These are such activities which are inevitable though they do not fit into the three definitions of value Addition listed above. These are often called Necessary Non Value Adding Activities or Value Enabling Activities.?

The third one – Non Value Adding Activities – is the real culprit. These qualify as true WASTE.?

In any process, our aim should be to focus on Value Adding Activities, minimize Necessary Non Value Adding Activities and Eliminate Non Value Adding Activities. Easier said than done; the biggest challenge being mindsets!?

But when we decide to embark on a Lean Journey, the first resolution we take is to change our mindset to a new way of thinking. That resolution will be challenged here!?

This sharing is one of the most important parts of Lean learning. I hope you found value in it!?

Here is the link for last week's article: https://www.dhirubhai.net/pulse/what-waste-sridhar-j ?

LEAN MURALI, my mentor in understanding LEAN, has a magnificent mission. His mission is to help one million young professionals become Lean Champions. Towards this, he conducts a weekly one hour online Knowledge Sharing Session where he explains Lean, Six Sigma concepts in a simple manner that is easy follow. He believes that spreading knowledge to hungry minds is no less than donating blood or feeding the poor. This is absolutely FREE and anyone can participate. Those interested in these free live sessions can opt to register through the following link:https://tinyurl.com/freelean

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