VA/NVA (Value-Added or Non-Value Added ratio): A metric that compares the amount of time in your work process spent on value-added activities to the amount of time spent on non-value added activities.
Value: A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer.
Value-Added Analysis: With this activity, a process improvement team strips the process down to it essential elements. The team isolates the activities that in the eyes of the customer actually add value to the product or service. The remaining non-value adding activities "waste" are targeted for extinction.
Value Chain: Activities outside of your organization that add value to your final product, such as the value adding activities of your suppliers.
Value Stream: The specific activities required to design, order and provide a specific product, from concept to launch, order to delivery, and raw materials into the hands of the customer.
Value Stream Mapping (VSM): Highlights the sources of waste and eliminates them by implementing a future state value stream that can become reality within a short time.
Variable Costs: Costs that vary with production or services/sales levels, such as the cost of RM used in the manufacturing process. Compare to Fixed Costs.
Visual Control: The placement in plain view of all tools, parts, production activities, and indicators of production system performance so everyone involved can understand the status of the system at a glance.
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