Question

What is the value stream? Describe in your response the concepts of value-added and non-value-added services.

Answer 1

Value stream is a set of all steps From start of the value creation until the delivery of end results to the customer and it is combination of the value creation and the value delivery services which is helpful in order to to summarise all the value creation facilities and enhance the satisfaction of the customer. It will be helping the business in order to understand organise and deliver value in in consumer hands and they will be allowing the business to specify the value propositions derived by external or internal stakeholders from an organisation.

Value added services will be all the all services which will be undertaken by the company in order to maximize the benefits of the customers and they will be leading to creation of value and they will be adding the value to the overall business processes and products for which the consumer is willing to pay.

Non value added services will be all the services which will be not adding any value to the product or service but they are an inherent part of the process. consumers are not willing to pay for these non value added services and this will be a burden on the organisation because this will be reducing the overall effectiveness of the organisation and they will be not leading to increase in the value and they will be lacking the performance of other facilities also. Example of non value services would be those services which are rework due to defect found in the product or unnecessary movement of goods