Unveiling the Magic: Value-Add vs. Non-Value-Add

Hello!

Thank you for being here! In today’s post I wanted to unveil the magic of value-add and non-value-add.

⭐The Magic of Value-Add

Value-add is like the secret ingredient that transforms the ordinary into the extraordinary. I remember learning about this back in school. When determining if something is a value add, I ask myself, “Would I be willing to pay extra for this?” It’s that extra sparkle that enhances a customer’s or individual’s experience. Although, the perception of value can be subjective varying from person to person or situation to situation.

💎Examples of Value-Add:

• Innovative Features: I have a poncho I bought that has space for my mickey ears, in my opinion that’s a value add when visiting Disney World in the rainy season!
• Customization: A product or service to tailored to individual preferences… like a monogrammed tote. You guessed it that’s a value-add

🌪️Navigating Non-Value-Add

Now, let’s journey into the land of non-value-add—a place where value disappears. In all seriousness, this is what you don’t want to pay extra for. My go to explanation for this is a customer is willing to pay for expedited shipping to their home to make it in time before they go on vacation, but they do not want to pay extra for you to move product between warehouses due to poor inventory planning.

🚫Examples of Non-Value-Add

• Excessive Paperwork: I’m not talking waivers for activities, I’m talking needing to fill out the same form 3 different times because it needs to be on pink, purple, and yellow paper.
• Redundant Processes: An action that doesn’t make the end product better, like adding extra packaging only for it to be thrown away.

✨In the end value-add versus non-value-add is a building block of lean thinking. Value-add activities directly enhance a product or service for the end user. On the other hand, non-value-add activities, while necessary, don’t directly contribute to the end product or service.

❤️I anticipate referencing this topic in future posts, so I hope this helps you to C Life Engineered.

-C