Value added time is the processes and activities in the production or manufacturing process that improve the product or add usefulness to it.
Explanation :
Most manufacturers try to eliminate all unnecessary production costs and wasted time. This makes their production lines leaner and also makes customers happier. Companies can provide better products at a cheaper price if they run production operations smoothly and efficiently. One way managers measure the efficiency of the production line is by looking at the cycle time.
Cycle time measures the amount of time it takes to produce a product. Cycle time includes process time, inspection time, move time, and wait time. All of these processes are part of producing one product. Inspection time, move time, and wait time are considered to be non-value adding time processes. Inspecting a computer for flaws or moving it to the loading dock does not improve the computer. In other words, these processes don’t add value to the product.
In a nutshell :
- Value-added is the additional features or economic value that a company adds to its products and services before offering them to customers.
- Adding value to a product or service helps companies attract more customers, which can boost revenue and profits.
- Value-added is effectively the difference between a product's price to consumers and the cost of producing it.
- Value can be added in several different ways, such as adding a brand name to a generic product or assembling a product in an innovative way.
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