|
In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added. Summing value added per unit over all units sold is total value added. Total value added is equivalent to revenue less outside purchases (of materials and services). Value added is a higher portion of revenue for integrated companies, e.g., manufacturing companies, and a lower portion of revenue for less integrated companies, e.g., retail companies. Total value added is very closely approximated by total labor expense (including wages, salaries, and benefits) plus "cash" operating profit (defined as operating profit plus depreciation expense, i.e., operating profit before depreciation). The first component (total labor expense) is a return to labor and the second component (operating profit before depreciation) is a return to capital (including capital goods, land, and other property). In national accounts used in macroeconomics, it refers to the contribution of the factors of production, i.e., capital (e.g., land and capital goods) and labor, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The national value added is shared between capital and labor (as the factors of production), and this sharing gives rise to issues of distribution. Outside of economics, value added refers to "extra" feature(s) of an item of interest (product, service, person etc.) that go beyond the standard expectations and provide something "more", even if the cost is higher to the client or purchasor. Value-added features give competitive edges to companies with otherwise more expensive products. Value-added methods and measurements are also being utilized in education as part of a national movement towards teacher evaluation and accountability in the United States. This type of measure is known as a value added modeling or measures ==Process Improvement== In a process improvement perspective, in order for a step in any process to be considered value added, the activity must meet all three of the following criteria: 1) The customer is willing to pay for this activity, 2) It must be done right the first time, 3) The action must change the product or service in some manner.〔Reference 1〕 http://www.isixsigma.com/dictionary/value-added/ Examples of non-value added steps include: inspection by a third party not part of the process, like traditional Quality Assurance, a decision or review board as part of production, or multiple offices or entities performing the same or similar tasks. Non Value Added tasks need to be further broken down into two categories: Non Value Added Business Required and Non Value Added Pure Waste. Non Value Added Business Required activities includes things like: * Hosting a Health Department Inspection * Filling out Tax Forms in Accounting * Accommodating a SOX Audit * Paying for a Business License * Ensuring hiring compliance policies for Federal, State, and Local Government * Paying for training for workers that they don't want or need, but are required to receive. (Driver's training for blind employees for example.) Non Value Added Pure Waste activities include things like: * Having an expense form or time sheet printed out, then scanned, then emailed to its destination * Having 10 people approve a document electronically when 9 need to read it and 1 approve it * Heating up fries for 10 people that only 5 people will order at your restaurant * Placing workstations 20 feet apart with parts that need to be carried back and forth instead of next to each other Two thoughts to keep in mind: 1. Non Value Added Business Required activities need to be kept in tight control, because many times, the people in charge of them will expand the activities because no one questions them. These are necessary, but not desirable activities. They cost everyone money, but provide no value. (According to the definition above of Value Added) 2. Non Value Added Pure Waste activities need to be eliminated...not the people that perform the activities, but the activities themselves. They don't need to be performed for any reason.〔Muda (Japanese term)〕 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Value added」の詳細全文を読む スポンサード リンク
|