Returns Processing
Customer returns receiving, inspection, disposition, and restocking
WarehouseLead Time
111.85h
Cycle Time
1.85h
Wait Time
110.0h
PCE
1.6%
Stages
6
Bottleneck
Parcel Received
Value-Add vs Non-Value-Add
Value-Add (VA)
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
Non-Value-Add (NVA)
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.
Process Timeline
Value-Add vs Non-Value-Add
Bottleneck Analysis
Stage Efficiency
| # | Stage | Cycle (h) | Wait (h) | VA | Resource | Defect % | Efficiency |
|---|---|---|---|---|---|---|---|
| 1 | Return Authorisation | 0.25 | 24.0 | VA | Customer Service | 10.0% | 1.0% |
| 2 | Parcel Received | 0.1 | 48.0 | NVA | Dock Clerk | 3.0% | 0.2% |
| 3 | Inspection & Grading | 0.5 | 4.0 | VA | Returns Inspector | 15.0% | 11.1% |
| 4 | Disposition Decision | 0.25 | 2.0 | VA | Returns Lead | 5.0% | 11.1% |
| 5 | Restock / Refurbish / Scrap | 0.5 | 8.0 | VA | Warehouse Worker | 8.0% | 5.9% |
| 6 | Refund / Credit Processing | 0.25 | 24.0 | VA | Finance | 4.0% | 1.0% |