Understanding Value with Lean Six Sigma
Part of the Lean Six Sigma For Dummies Cheat Sheet
When you’re trying to improve value for your customers with Lean Six Sigma, remember that in your customers’ eyes, value is what they’re willing to pay for:
The right products and services
At the right time
At the right price
At the right quality
For a step to be value-added, it must meet the following three criteria:
The customer has to care about the step.
The step must either physically change the product or service in some way, or be an essential prerequisite for another step.
The step must be actioned ‘right first time’.
Try to remove those steps that don’t meet these criteria, but recognise that you may want to retain some non-value-added steps, perhaps for regulatory or financial reasons, for example.
You need to identify and understand the value stream and eliminate waste and non-value-added steps. As little as 10 to 15 per cent of process steps add value, often representing only 1 per cent of the total process time.