Customer value is the starting point for every Lean. It is the only factor that determines whether an activity within your process is necessary or should be considered waste. Simply put, value is anything a customer is willing to pay for, wait for, or make an effort for.

When does an action truly add value?

Within Lean , we Lean three strict criteria to determine whether a process step adds value. An activity is only valuable if it meets all three conditions:

1. The customer is willing to pay for it: The activity directly contributes to the customer's desire.
2. The product or service changes: A physical or informational transformation takes place (e.g., assembling a component or writing a recommendation).
3. First Time Right: The activity is performed correctly the first time (repair work is never valuable).

Making value tangible: The SQDC model

Because 'value' often feels abstract, we make it concrete with the four dimensions of SQDC. The customer expects:

• Safety: A product or service that is safe for people and the environment.
• Quality: It must meet specifications and expectations.
• Delivery: At the right time, in the right place, and in the right quantity.
• Cost: At a fair price (where we minimize our costs by eliminating waste).

How do you determine customer value? (Voice of the Customer)

Customer value is not something we come up with within the organization; it is determined by the customer. To find this out, we use the Voice of the Customer (VOC). Through interviews, surveys, or observations, we translate customer wishes into Critical to Quality (CTQ) requirements. These are the measurable performance indicators that make a difference to the customer.

Why is this important?

Once you know what adds value, you can also see what doesn't. Anything that doesn't add value is called Muda (waste). By shifting the focus from "keeping everyone busy" to "letting value flow to the customer," you create an organization that delivers faster, better, and with more enjoyment.

Within Lean , we Lean three strict criteria to determine whether a process step adds value. An activity is only valuable if it meets all three conditions:

1. The customer is willing to pay for it: The activity directly contributes to the customer's desire.
2. The product or service changes: A physical or informational transformation takes place (e.g., assembling a component or writing a recommendation).
3. First Time Right: The activity is performed correctly the first time (repair work is never valuable).

Value is therefore the first principle of the five Lean principles.