Slide 13 of 26
Read slide and discuss the concept of value added and non-value added carefully.
It is important to understand this definition. However, we will not spend a lot of time discussing whether a step is Value Added or Non-Value Added, as ultimately we will try to impact both.
A factor in understanding Value Added is recognizing the exact customer for the process. The ultimate customer is the person on whom we will focus.
Does the ultimate customer consider the step to be something they are willing to pay for? This determination for if something is value added must be made from the perspective of the ultimate customer.
(Ask the team who the customers, both internal and external, are for the process. Write up a chart list and hang it on the wall.
Now ask them who the ultimate customer is and circle that item to help them stay focused on the customer who ultimately drives the business!)
Do not be distracted by other customers.