Value

Question 1

What is value in context of lean

Answer 1

Understanding what the customer is willing to pay for. Value is always defined by the customer and is categorized in three ways:
1. Non-value-added activity (waste)
2. Value added activity
3. business value added activity

Question 2

What are the 5 principles of lean

Answer 2

1. Value
2. Value Stream Mapping
3. Flow
4. Pull
5. Strive for perfection

Question 3

Importance of Customer Perspective on value

Answer 3

The customer judges what is valuable not the company through what the customer perceives as useful, efficient, and worth paying for. Places customer needs over company wants

Question 4

What are the three criteria for value-added activity

Answer 4

• customer must be willing to pay for it
• activity must transform the product or service in some way
• activity must be done correctly the first time

Question 5

What is non value added activity

Answer 5

• any activity that does not meet the three criteria for value added activity
• to the customer these activities seem like wasted time or effort

Question 6

What are the 3 M’s of non value added

Answer 6

1. Muda (waste) - An activity that consumes resources without creating value for the customer
2. Mura (unevenness) - Waste caused by variation in quality, cost, or delivery
3. Muri (overdoing) - the unnecessary or unreasonable overburdening of people, equipment, or systems by demands that exceed capacity

Question 7

Disguised NVA activities

Answer 7

• activities that look like they add value but do not
  EX:
• Admin activities: legal, accounting, supervising
• Product Support: Product testing, inspection, transport
• Bureaucracy: forms, reports

Question 8

What is House of Quality and its other name

Answer 8

It is a correlation of ways to achieve what a customer wants

AKA Quality Function Deployment

Question 9

QFD Neighborhood

Answer 9

1. VOC
2. Functional Requirements
3. Product Design Requirements
4. Process Design Requirements
5. Process Control Requirements