Lean Definition

Value

Value is a capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. The more a product or service meets a customer’s needs in terms of affordability, availability and Utility the greater value it has. Thus a product with a true value will enable, or provide the capability for, the customer to accomplish his objectives.

Value is a measure if the worth of a specific product or service by a customer, and is a function of:

The product’s usefulness in satisfying a customer need
The relative importance of the need being satisfied,
The availability of the product relative to when it is needed and
The cost of ownership to the customer. Value added- A type of process(accomplished correctly the first time) that changes (transforms) the shape or character (fit, form or function) of a product or assembly.