To add value means that three things have occurred.
- The process step has changed the form or function of a product or service
- The customer is willing to pay for the change
- The step is performed correctly the first time.
Any time in the process where value is not added is waste, also known as non-value adding.
Use: There is no use for a non-value adding step, but it is essential that you can see it, reduce it, or completely eliminate it.
