Tag Archives: how to define value-added work

Is Your Work Value-Added?

One of Bill Conway’s favorite sayings has always been, “The most important business decision people make every day, is deciding what to work on.”

It’s important for us all to continually self-evaluate in this area. What should we work on? What value will it add for our customers?

Once people know what to work on, they can then determine which tools and methods to use – i.e., How should we go about it? But deciding “what” to work on and “why” must be the first considerations.

Most of us would likely agree that we want our workforce to spend most if not all of their time on “value-added” work, which is often defined as the work our external customer would be willing to pay for, if they knew what we were doing.

Sometimes this is a product, sometimes a service, and sometimes a combination of product and value-adding service. For example, a value-adding distributor delivers the product to a work-site but can also prepare or pre-stage the material, so it is ready to be put into use, saving the construction company time and money. The value goes beyond the product they sell to the service of presenting it in the form that is ready for use.

Common Categories of Work

People are often surprised at the amount of “non-value-added” work that is part of the day-to-day reality in most organizations. Even in the best performing organizations, it is well under 50% of the work being done. In many organizations, over 80% of time and resources are not adding value.

Consider these common examples of non-value-added work:

  • Inspections to find errors
  • Rework to fix errors
  • Errors or defects that are never found and make their way into defective final product
  • Work that sits waiting in front of a bottleneck, or resources that are idled behind a bottleneck
  • Unnecessary work
  • Necessary work such as filling-out expense reports
  • Excess inventory
  • Work product that does not match customer needs or customer needs that go unmet because they have not been surfaced

So, the question is, what can, or should, we do to increase the amount of value-added work within our organization? Our next post will focus on some answers…