6 Value-Added Management
It is important to understand the distinction between value-added and non-value-added (VA/NVA) activities. Everything an organization does is a process. The organization may be divided into functional departments for the purposes of management, but the company’s processes will often cross those departmental barriers. The purpose of value-added management is to gain an understanding of the processes required to run the business, and then to determine if those processes are administered well.
Two techniques are required:
Process mapping (or value-stream mapping*), which is a graphical method of describing the processes within the company
Value-added analysis method of describing the processes within the company Value-added ...
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