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Value Added

Tina Hernandez, marketing director for the consumer product division of a global company, felt that her company experienced an unusually long time to market. As Tina described the situation, time to market includes everything from idea conception through customer availability.

After I completed a value-added analysis, it became apparent that the problem lay with the distribution component of their marketing strategy. We identified activities in the distribution process that did not add value for the customer. Because every activity in a business process adds to the cost of the end product or service and because ...


Value-added analysis is a process improvement technique designed to diagnose which activities contribute value to the customer and which do not. Activities which don’t add value consume resources unnecessarily and thus are ideal candidates for elimination. Discover why it’s so tempting to retain certain non-value added activities, and how to determine which process activities truly add value to your customers.