Monday, April 4, 2011

Its All About Customer Value Add

Customer value add tasks are those tasks that a customer is willing to pay for. On a daily basis we maybe be doing several activities or tasks and some of them are tasks that business requires us to do and are referred to as business value add. There are some tasks that just don't add any value. These are called non value add. In lean six sigma concept business value add is also considered to be non value add. Eliminating waste/non-value add will save our customer money and also create a better return on investment.

Photo Courtesy: Chesi - Fotos CC

What are some forms of waste or non-value add?

D.O.W.N.T.I.M.E
  • Defects or Rework
  • Overproduction
  • Waiting (Idle Time)
  • Non-Value Added Processing
  • Transportation
  • Inventory
  • Motion
  • Employees Under Utilized
What can we do to add value to the customer? Look at everything we do on a daily basis and ask does this add any value for the customer. If they knew you were doing this would they pay for it? I will get into the details of each waste in my next post.

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