Value Added VS. Non-Value Added
Value Added:
Value added (VA): An activity that a customer is willing to pay for; it changes the form, fit, or function of a product or service; it converts input to output; it is NOT waste.
Non-Value Added:
Non-Value Added (NVA): These activities are unnecessary; they provide no value for internal or external customers and can be immediately eliminated.
Business Value Added (BVA):
Business Value Added (BVA): These activities provide no value to the customers (as defined above) but are necessary given current process limitations. Common examples are inspections, management approvals, most quality assurance activities, and technical support activities.
When creating a process map, it helps to understand each process steps value so you can reduce waste on items that are Non-Value added.
I like to color code my process map in these 3 categories to understand which steps I must keep for regulatory and client items and which items I can remove/ reduce from the process.
