Step 1. Identify Value – The very First Step is to Define Value from the perspective of the Final Customer. Express value in terms of a specific product or service, which meets the customer’s needs at a specific price and at a specific time.
Step 2. Identify Steps – Identify all the steps taken to Create Value defined above and Categorize Each Step into two Categories.
a) Value Added Steps – These are Activities or Steps which the Customer is Willing to Pay for.
b) Non-Value Added Steps – Such Activities or Steps Consume Time and Resources which Costs You Money but the Customer is not willing to pay for it. Such Steps are also called Waste.
b) Non-Value Added Steps – Such Activities or Steps Consume Time and Resources which Costs You Money but the Customer is not willing to pay for it. Such Steps are also called Waste.
Step 3. Create Smooth Flow – Eliminate Non-Value Added Steps also called Waste from the above timeline and arrange the remaining steps in Correct Sequence Enabling the Value Flow Smoothly.
Above procedure will Result in Reduction in Consumption of Time and Resources which will in turn Reduce Cost In Your Business.
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