Value, is defined by the customer. The customer component has three dimensions: the external end customer, the internal downstream customer of any internal upstream process, and your company as the customer of external suppliers. Basically, any customer wants quantities and quality delivered on time and at the best price. The best price is not always the lowest price but rather the best price with the best combination of quantity, quality, and delivery. Value should not be a perceived value. Value must be determined through direct query of the customer. A final thought regarding Value is to apply a simple principle. If your customer is paying you to do something, it has value. Most companies have processes that the customer does not pay for. Some of the processes are required by the government or other regulating agencies and will continue to be performed to meet those needs. |