The Definition of Value
Waste needs to be identified and eliminated or reduced, but that is hard to do if values is not defined. Without a definition of value, the separation of wasteful items and non-wasteful items becomes harder.
Here is the definition of value that I use:
- It must be something the customer finds valuable and is willing to pay for
- It must change the form, fit, or function of the product/service
- It must be done right the first time
All three of the criteria must be met. No Exceptions!
I am very strict in my definition of value When I look to improve a process I want to first work on eliminating or reducing the non-value added steps/actions. Not squeeze the juice out of the value added items. The non-value added actions/steps is the place where the headaches and pain points for the employee occur. It isn’t changing the product/service that cause headaches as much as it is looking for the things needed to be able to do the change to the product/service.
Defining what is value is the first step in being able to eliminate waste. Feel free to use the one above. If not, be sure to have one of your own. You don’t want to eliminate something that a customer may find valuable.