Kevin,
I don't see the correlation in #6. I can't say I'm an expert on Shannon Entropy but I do know a little about entropy in thermodynamics. If my memory serves me correctly it is tied to energy (not the sheriff) and states something like changing from 1 equilibrium to another my chaos will increase. If I'm correct then I don't see how value and chaos can be interchanged.
However look at this example for a paradox. Lets use tire changing. As a customer the only value added op is putting on new or rotating the tires. There is nothing else. So if they do it by a single hand jack or the hydraulic lift the value will not be increased. Time may be reduced but to offset the cost of the lift, the customer cost may increase.
Now lets look at the operation itself. The
ONLY value added step in the whole tire changing operation is the moment the lug breaks loose and the moment it tightens! The rest of the spinning in muda.
(I didn't make this up folks, this is actually from a formula one racing study.) So in order to reduce the muda, I can go a couple of ways: Reduce the amount of spin on each lug or reduce the number of lugs. Through evaluation of the alternatives we come up with the pros and cons of each. 1) I can only achieve minimal savings by reducing the spin of each lug before hindering safety. I'll limit it to 50% improvement before there are not enough threads to safely hold on the lug nut. 2) In order to achieve maximum reduction (0 lugs) I lose the ability to change the tire (permanently affixed) but, if I mount the rim/tire on a serated (sp?) spindal (keeps the tire from just spinning on the hub) and secure it using only 1 lug, I have reduced the non-valued operation by 80%!
But remember the only value real added operation to the customer is that the tires are changed.
So you have to develop process improvements based on required throughput and ensuring the value to the customer isn't changed or hindered.
How about raising the car up, the only value added portion is when it allows removal or installation of the tire. So does it matter if I use 1 hand jack, 4 hydraulic jacks or the lift?
It can go on and on.