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Lean Six Sigma Certification Series. Value Added Analysis Chapter 4. DM A IC – Analyzing the Baseline. DM A IC – Analyzing the Baseline. Value Added

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Value Added Analysis Chapter 4

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Value added analysis chapter 4

Lean Six Sigma

Certification Series

Value Added Analysis

Chapter 4


Value added analysis chapter 4

DMAIC – Analyzing the Baseline


Value added analysis chapter 4

DMAIC – Analyzing the Baseline

  • Value Added

    Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as directly related to the production of the product or service which will meet/satisfy their need. You can ask the question “Is this something that the customer is willing to pay for?”


Value added analysis chapter 4

DMAIC – Analyzing the Baseline

  • Non Value Added

    Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as NOT directly related to the production of the product or service which will meet/satisfy their need. You can ask the question “Is this something that the customer is NOT willing to pay for?”


Value added analysis chapter 4

DMAIC – Analyzing the Baseline

  • Business Non Value Added

    Activities (or its inputs, outputs, controls, or mechanisms) which are considered by the customer as NOT directly related to the production of the product or service which will meet/satisfy their need, but are considered important to another stakeholder of the process (many times they are represented in the Controls on the process model). Examples: OSHA, Environmental and other Regulatory compliance, managing employee pay, facilities management, in-house staff training, audit trail, etc.


Value added analysis chapter 4

Can eliminate

without impacting

customer?

Non-value added

Required by a

Control?

Can control

be eliminated?

Yes

Yes

Yes

No

No

No

Yes

Customer request?

Yes

Eliminate if

preceding activity

done correctly?

Yes

No

Impact internal

customer?

Yes

No

Value Added

No

Improving internal

efficiency

Necessary

Yes

No

Non-value added

Non-mandatory

DMAIC – Analyzing the Baseline

Value Added Analysis


Value added analysis chapter 4

DMAIC – Analyzing the Baseline

Value Added Analysis


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