Contract Variation Management

An activity is value-add if it meets all three criteria:

• The customer is willing to pay for it
• It transforms the product or service
• It is done right the first time

Examples: Assembly, diagnosis, treatment, coding, machining, testing

Activities that consume time or resources but don't add value from the customer's perspective:

• Waiting — queues, approvals, batching delays
• Transport — moving materials or information
• Motion — unnecessary movement of people
• Rework — correcting defects or errors
• Over-processing — doing more than required

Note: Some NVA is necessary (compliance, safety). Target unnecessary NVA first.