Value-added only occurs when the organization eliminates something or improves its performance. When the value-added, results in reducing processing time, the department should be required to identify the surplus employees resulting from the change initiative. Keeping all these problems in mind, people still must provide a legitimate evaluation of the value-added content for the innovative changes. Some of the more frequently used measurements are: increased sales, reduced production costs, increased market share, return on investment, reduced cycle time, increased customer satisfaction, reduced accounts receivable cycle time, and improved reliability. Inventory management is the skill of minimizing the cost and risk of incoming, in process, and final goods inventory. Inventory is a costly part of every organization’s operation. It represents the costs of the materials and labor that go into producing the inventory, plus the cost of the floor space occupied by the inventory. Inventory costs also include the costs of the money used to produce the item.