The price of a product cannot be controlled from within a company, but when it comes to the cost of the product, we know that it can be controlled. We can say that this cost consists of activities with Added Value and Loss or Waste.
By definition, Value Added is an attribute of the product or service that the customer is willing to pay for.
According to the Lean system, the activities in a process fall into three categories:
- value-added activities: necessary to transform a product / service from its initial form into a final form, such as: assembly operations, pressing, etc.
- activities without value but essential, which do not add value but are necessary or required for carrying out activities that change the form of the product / service, such as: completing reports or record sheets, preventive maintenance of equipment.
- non-value-added activities that are neither imposed nor desired by the customer, but are, in other words, losses that must be eliminated. For example: lack of components, inventory, defects, product control or reprocessing.
We can analyze all the activities within a process to determine whether or not they add value to the product.
The activities that bring value to the product / service must be analyzed correctly and as deeply as possible, just like the activities without added value.
How do we find out what the client's needs are? Do we know how to listen to his voice?
One of the methods, especially if we approach the matter technically, is to talk to the client directly or to actually go to the clientțs premises to better understand its applications and needs.
There have been cases in which what we thought had an important impact or was a necessity for the client, turned out to be false after several checks or discussions with him.
As a result, the activities that were initially considered to bring added value to the customer and that did not actually do that could be improved or even eliminated if necessary