Once you create a Value Stream Map, then next logical step is to determine which activities add value and which do not.
At a recent ASQ training presented by William Levinson, I picked up a few interesting ways to view this.
The first step is to assign each step into one of the following:
Value Adding, Value-Assisting and Non-Value Adding.
Value Adding can be defined as:
An activity that transforms the product or service.
Is this something the customer wants and and finds value in (is willing to pay for)?
Is mandated by law or the customer?
Value-Assisting activites do not tranform the producct, but their omission would soon become known and create delays or other problems. Prevenative maintenance is an example of this.
Non-Value Adding activites can be eliminaed without adverse effects on quality, productivity or customer satisfaction.
Another way to differientate the three categories is to carefully look at the words used to describe each. In a manufacturing environment, there are some examples.
Value Adding Words: assemble, coat, drill, heat-treat, machie, plate, punch, stamp.
Value Assisting Words: calibrate, deliver (to the customer), load, unload, measure, package, preventative maintenance, setup, test.
Non-Value Adding Words: inventory, move, reorient, repair, rework, scrap, store, transport, wait, warehouse.
Can you think of similiar words for office or administrative activities?
In many ways this is similiar to the 5-S processes of Sort and Set in Order, but applying them to processes.