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1. What does “value-added effort” mean as it applies to a process step?
Value added effort is the activity, or portion of an activity, that is adding an element of customer value to an item flowing through a process
Value added effort are specially priced features or options that are added to an item flowing through a process
Value-added effort is effort that is spent resolving problems at a customer’s site after the initial purchase of the item has occurred
2. Six sigma tools help to understand “How” something is done. What do Lean tools help us understand?
Is something required to be done
Who is doing it
When something is done
3. Who determines whether an activity is value added?
The customer based upon their definition of value
The financial analyst based upon the price/cost ratio of an activity
The process manager based upon what keeps the process flowing smoothly
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