To add value means that three things have occurred.

  1.  The process step has changed the form or function of a product or service
  2. The customer is willing to pay for the change
  3. The step is performed correctly the first time.

Any time in the process where value is not added is waste, also known as non-value adding.

Use: There is no use for a non-value adding step, but it is essential that you can see it, reduce it, or completely eliminate it.

Six Sigma Terminology

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