Value Add Time (VAT)

Value Add Time (VAT) refers to the portion of the cycle time for which the customer is willing to pay. Maximizing this time makes you more efficient.

Objective:
  • Define VAT from the customer’s perspective
  • Reduce Non-Value Added Time (NVAT)
  • Increase speed
  • Redesign processes
Tips:
  • To identify VAT/NVAT, use the TIMWOOD tool.
  • Always view activities from the customer’s perspective.
  • Internal customer/supplier relationships also contain waste.
  • Waste represents hidden potential.
Platzhalter

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