Where is the Value?

Identify & Quantify Value in the activities

2.3
Identify & Quantify Value in the Activities

Where- and how much value can be found in each activity? 

In the previous topic we talked about losses. And it was stated how the majority of our process time was being affected by those losses.

  • Look at the output of this process. Is it (containing) ‘value’ at all? Define precisely what in the output is ‘value’.
  • In cases where it is not quite clear yet what the desired output of this process should be, (re)define it now; even if this would be for the future version of the process. Always define ‘value’ from the perspective of the customer. You can’t be critical enough here!
  • Now go backward; from every activity, decide whether it unambiguously adds value (as you just defined it). Be strict: Something adds no value just because ‘this is the way we do it’, but because here is something being achieved that in it selves contains already value. Good test-questions would be:
    • “Does the customer care about this”.
    • “Would you pay for it?”,
    • “Would you appreciate it?” 
  • Mark activities containing value as green, the others as red.

Be critical! It is very rare to find more than 5 % value adding activities in most processes! 

How to find VALUE in your activities?

Value Adding Time: How much ‘value’ is there in the value-adding activities?

  • Try to estimate how much time of the activity is actually been spent on the real value adding part. Again: be strict. If a value adding activity in all takes 10 minutes, but contains searching, correcting, and other losses, only count the real value adding time. So a value adding activity of 30 minutes could contain 2 minutes value adding time.

Fill in Value Timeline

Fill Value Timeline

  • The third line of the time-section (bottom of the form) is the ‘Value added time’ line.
  • Write the estimated value time in the value-activities at the 3th time line. Usually this is just a fraction of the activity time.
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