Value Added vs Non Value Added

The video explains the concepts of value added (VA) and non-value added (NVA) activities in the context of lean manufacturing.

Value added activities directly contribute to the creation or improvement of a product or service in a way that customers are willing to pay for, while non-value added activities consume resources but do not add value from the customer’s perspective.

The goal in lean manufacturing is to minimize or eliminate NVA activities through continuous improvement efforts.

While not all NVA activities can be eliminated immediately, the aim is to identify and understand these activities and work towards reducing them over time.

Understanding the difference between VA and NVA activities is crucial for industrial engineers, allowing for the identification of waste and the development of strategies to improve efficiency and productivity.