Value Added Analysis in Process Improvement

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What is the main purpose of Value Added Analysis?

To identify steps that are necessary for the business to run smoothly
To assess the overall efficiency of a process
To eliminate unnecessary steps in a process (correct)
To determine the revenue potential of a business

Which of the following steps is an example of a value-added activity?

Notifying the customer of the repair status
Following up with the customer after the repair
Recording defects in an information system
Diagnosing the problem with a washing machine (correct)

What is Business Value Added (BVA) analysis used to identify?

Steps that directly contribute to the customer's desired outcome
Steps that are required by regulatory requirements
Steps that reduce business losses
Steps that are necessary for the business to run smoothly (correct)

Why is the step 'Record defect' not considered value-added for the customer?

It does not directly contribute to the customer's desired outcome (D) Signup and view all the answers

When determining whether a step is Business Value Added (BVA), which of the following questions should be asked?

Is this step required to collect revenue or improve the business? (B) Signup and view all the answers

What is the benefit of eliminating non-value-added activities in a process?

To improve efficiency and effectiveness (B) Signup and view all the answers

What is the primary reason the company records defects and their resolution?

To build up a knowledge base of typical defects and their resolution (D) Signup and view all the answers

What category would handovers and context switches fall under in Value Added Analysis?

Non-Value Adding (NVA) (B) Signup and view all the answers

What is the main benefit of detecting frequent defects in the washing machine?

To report such defects to the manufacturer or distributor (C) Signup and view all the answers

What is the primary goal of Value-Added Analysis?

To eliminate unnecessary steps in a process (B) Signup and view all the answers

What is the purpose of breaking down each task in a process into steps in Value-Added Analysis?

To classify each step into Value-Adding, Business Value-Adding, or Non-Value-Adding (A) Signup and view all the answers

What type of activity would a customer be unwilling to pay for?

Non-Value Adding activities (B) Signup and view all the answers

What is a characteristic of a Value-Adding (VA) step?

It produces value or satisfaction to the customer (D) Signup and view all the answers

What is the goal of Value Added Analysis?

To classify activities into value-added, value-enabling, and non-value-added categories (C) Signup and view all the answers

What is NOT a category into which each step is classified in Value-Added Analysis?

Stakeholder-Adding (SA) (D) Signup and view all the answers

What question can help determine if a step is Value-Adding (VA)?

Would the customer be willing to pay for this step? (D) Signup and view all the answers

What is a result of removing a Value-Adding (VA) step from a process?

The customer would perceive the outcome of the process as less valuable (A) Signup and view all the answers

Value Added Analysis in Process Improvement

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