Do we know what portion of our business is value added service, value enabler or non value added?
I am not surprised to learn that most of the business thinks that either the questionis too theoretical or too complex to answer. In either case most organizations fail to follow up or answer the question. Most often businesses end up growing into a complex set of processes and it is not east to classify them based on the value added, non value added or value enabler activities.
Value added activities are those activities that actually change the form, fit or function of the product to meet customer requirements.
Non-value added activities consume resources, time or space and do not add value to the product for example, time delays, transportation, planning documentation etc.
Value enabler are those activities that consume resources, time or space and do not add value to the product but are required for business or regulatory reasons (impossible to avoid or eliminate).
