Value-added

An activity is considered to add value if The customer is willing to pay for itThe product gets physically transformed or information is being alteredIt is done right first time Everthing that does not add value to a product or service is considered to be...
Work in Process (WIP) [WIP]

Work in Process (WIP) [WIP]

Work in Process (WIP) is a Lean Metric describing the number of items within the process boundaries. To determine WIP Count allproduct between process stepsproducts being transformed at the momenthalf-finished goods which are stored in the warehouse between processes...

Non-Value Added Costs

Costs of using resources beyond what is needed to meet customer requirements. E.g. costs of OverproductionWaitingTransportOverprocessingInventoryMotionetc. Read also: Types of...

Types of Waste

In the Lean methodology, Waste is simply everything the customer is not willing to pay for. It is anything other than the absolute minimum of material, machines, and manpower required to add value to the product. The acronym TIMWOODS can be used to quickly identify...
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