Increase Value in Future State
Use eliminated Non-Value time to create extra Value
3.3
Add more Value
Many losses are now eliminated: There is space for more value!
Oops… Value-time decreased in our Future State…
“After making our future state, not only the lead time decreased, also the Value Adding time decreased. Did we make a mistake?”
When analyzing the current state, tons of losses will become visible and lots of improvement opportunities- and ideas will popup.
It is not unusual to discover that also Value Adding activities still contain waste. So many value adding activities can be performed in a faster, easier or different way, which results in the same output in shorter time.
Replace Non-value adding activities by Value adding activities!
The idea is to replace all the gained time with extra value-adding activities. However, when there is no need- or desire to add extra value as a replacement for the gained time, you will achieve the same value in less time!
Of course the trick would be to ‘cash’ this.
There are 2 possibilities:
1. Creating the same value in less time
✔ Efficiency gained.
This can only be cashed if you do not need to pay for this time anymore.
2. Creating more value in the same time
✔ Effectiveness gained.
The cost will stay the same, but you will have higher revenues from those costs.
! | Stop thinking in ‘COST’ Start thinking in REVENUE, in VALUE! |
Invest the gained wisely: Add extra Value!
The time that has become available can be reinvested in the addition of extra value – things we would like to do, but did not find the time for – or this time can be used for new loss-reduction activities.
In this way the negative spiral of ‘starvation due to cost-cutting’ can be turned around in ‘profit growth due to becoming better and better’ -in other words: real continuous improvement.