Value Added

The term value added refers to the value added to a product or service by an activity or operation. It is work that a customer would be happy to pay for. Perhaps not surprisingly analysis of many businesses and associated processes find that there is a distinct lack of activities that add real value to a product or service.

The aim of any new business process must be to eliminate no value added, reduce and, where possible, eliminate business value added and enhance and build more customer value added.

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