And use specific lean tools to eliminate or reduce them. The aim of the LEAN approach is to identify them in the process. In any process, almost 80 – 85% of activities are non-value adding activities. They are necessary for the continuity of a process.

They improve processes for productivity and quality.Įnabling value-added Activity: These activities do not add value to a customer. Value-added Activity: These activities add value to the process and are essential. Rather, if present excessively they result in customer dissatisfaction. A customer doesn’t pay for the costs associated with these activities willingly. Non-Value-added Activity: These activities do not add any value to the processor products. In a process, these activities can be classified into three types. “Value” is related to the customer’s perception of the product(s) or service(s), which he or she is willing to pay for.Ī process is a set of activities, which converts inputs into outputs using resources. Let’s understand what is 'Value” in the above definition of Lean:ĭepending on the type of business process & industry context, the customer defines “value”. It is a never-ending approach to waste removal, thus promotes a continuous chain of improvements. Optimizing resources for key improvements among others. Reducing or eliminating the chance of defect generation, Improving product or service delivery time, The Lean method ensures high quality and customer satisfaction. It emphasizes removing wasteful steps in a process and taking the only value-added steps. Lean is a systematic approach to reduce or eliminate activities that don't add value to the process. So let's begin: Section I: Lean Methodology What is Lean? People with no experience in this area can get an idea of what it is all about. We will introduce you to the methodologies of Lean, Six Sigma, and Lean Six Sigma. If you are starting to learn about the concepts of streamlining a business process, you are in the right place.

Lean six sigma