Waste and Value-Added Management Tools

Marc Helmold

Chapter Chapter 17 in Successful Management Strategies and Tools, 2021, pp 171-184 from Springer

Abstract: Abstract Added value can be defined as products, services, processes and activities, which generate a certain value to the organisation and enterprise. Value-added must be regarded from the customer viewpoint and is everything for which the customer is willing to pay for. It is important that Value-added is recognised and perceived as value by the client. Many studies have shown that we only add value to a product for less than 5–15% of the time, the rest of the time is wasted (Helmold & Terry, 2016a, b). The opposite is non-adding value or waste as shown in Fig. 17.1. Waste (Japanese: Muda, 無駄) is anything which adds cost or time without adding any value or any activity which does not satisfy any of the above conditions of Value-added is a waste or a non-Value-adding activity in a process. The focus in operations management must therefore be in eliminating such activities like waiting time or rework (Liker, 2004). Enterprise must target value-added process and eliminate or reduce waste, whereby waste can be visible (obvious) or invisible (hidden) as shown in Fig. 17.2.

Date: 2021
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DOI: 10.1007/978-3-030-77661-9_17

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