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I feel that one cannot use ONLY any one of the 3 given checkpoints or all of the 3, there are much more different checkpoints that will provide a different level of checks for activities. Each Activity will have its own set of checkpoints, which will give valid results. Depending on factors and variables like industry, business objectives, timelines, environment including physical and socioeconomic, one needs to devise suitable checkpoints to identify whether an activity id adding value or not. When looking at the value of the product or service, the goal is to have the value of the end-product or service exceed the cost of producing the product or providing the service. The cost of the product or service includes all resources used to produce it (e.g., raw materials, labor, storage, transportation, and overhead costs). We need to examine each activity within the process and determine the value-added assessment of the activity. The value added by an activity, in an accounting sense, is simply: (Value of the product after the activity) minus (Value of the product prior to the activity). The value added by an activity should be a positive value. Ideally, the value added by the activity is equal to or greater than the costs incurred during the activity. Value from the customer's point of view is independent of the cost to produce the product or provide the service. It is based on the customer's expectations, as identified by the effectiveness indicators for the process. So for me, the questions that I would need to ask, as checkpoints would deter the following categories of “Wastages” or Non value for all activities connected to processes: Waiting (idle) times Excess motion (transportation) Handling (moving things) Excess or useless inventory Overprocessing Overproduction Defects Broadly, the following questions cover the Checks on the above wastages: - Is the process documented? - Is there change management processes that ensure traceability of business process changes? - Is the process documentation up to date and relevant? - Are key decision points defined with the appropriate decision gates and levels of authority? - Is the process owner of the process clearly defined? - Does the process owner understand the process's role in the value network? - Is their information quality processes in place when a process captures or generates data? - Is there a continuous improvement program operational? - Does the process adhere to all the legal requirements? - Are there escalation procedures in place if process execution get delayed? - Are business continuity processes defined? - Is there disaster recovery processes in place? - Is the process outputs requirements clearly defined? - Does the process performance relate back to a somebody's performance assessment? - Are the process logistic in place to ensure all the process enablers are always available? - Is there process performance feedback in place that measures process performance? - Are there regular process reviews to ensure the process is executed according to its design? - Are there policies in place to regulate process execution? - Are process outputs aligned with strategic intent and customer expectations? - Are there processes to evaluate reasons for process failures and recommend corrective measures? - Is there a risk log that defines the degree of risk associated with process failure? All the checklist points might not be applicable to every business process. But I think this list will at be a good starting point to secure a good flight for the business. Even a short checklist used continuously to ensure consistency can make a big difference to the quality of processes in an organization. The aim for productivity improvement is to enhance the Real Value addActivity (RVA) which directly contributes to satisfying the customer's expectations/ perception of good product/ Service (e.g., taking customer orders, receiving materials, assembling materials, shipping) And reduce the Business Value add activities (BVA) activities which satisfy business requirements, but add no value from the customer's viewpoint (e.g., preparing financial reports, maintaining human resources records, and ordering business supplies) and to eliminate the Non Value Add activities(NVA)which do not enhance the customer's image of the product or service and do not support the business process and can be removed from the process with no effect on the end product / service When looking for ways to reduce BVA activities and to eliminate NVA activities, be creative and innovative. As an example In the QSR industry , all activities and decisions need to be customer-centric and hence, It is imminent to ask against all activities whether ; - Will the customer be 100% satisfied and perceive value for money?? The customer will be retained and will always add to new customers through word of mouth - Can the activity be scheduled and repetition can be eliminated- Eg, the Preventive maintenance schedule- It helps to ensure that there is no firefighting and customer experience is provided seamlessly on a continuous basis. - Can the activity be measured for timelines and impact- Most important- all activities need to be SMART, so that we can measure and improve on the same, thus committing to improve customer service at all times - Is the activity covering the scope for defects and defectives to reduce rejections. Eg in a QSR, the products have a defined time and temperature for cooking and equipment are automated for the same. Thus there is standardization and the customer’s expectation is met at all times - Is the activity using lesser movement of people- Eg. In the production area the tables and kitchen layout can be arrangeds in such a way that the staff need not move around too much and find things in “reach” and are able to produce faster. Thus saving time for the customer These are few examples that I could fit offhand- In conclusion- All the questions need to be answered in an affirmative towards customer satisfaction!!

“Value” for any product/service is defined by the customer. It could be the quality of product/service (or) the price that the customer pays for (or) the on-time delivery and/or a combination of all three. But sometimes “Value-adding” activities of an organisation may not directly translate to an additional cost paid by the customer. It could result in acquisition of more customers (i.e. increase in market share) whereby the organisation recovers its cost of the “Value -adding” activities. For such “Value-adding” activities, I feel, the 3 universally accepted checks for “Value -add” activities may not be sufficient. In today’s rapidly changing world, some activities which might have been “good-to have” , in the earlier days, are becoming quintessential for organisations. Below, I have identified a few checks and activities which, I feel, can neither be categorised as “Non-Valve Add” nor as “Essential but Non-Value Add” today. Check 1: A value added activity is one that provides a competitive edge or differentiation to the current service compared with competition. Activity: Signing a new supplier relationship agreement or collaboration agreement with another company. Explanation: The main objective of Collaboration agreement with another company or Supplier Relationship Management is to establish two-way, mutually beneficial relationships between organisations or an organisation and its suppliers. The collaborative, relationship building is aimed at providing a greater added value to the end customer or a differentiation factor which provides a competitive edge. Another benefit is access to new customers belonging to the other partner/supplier and joint business development activities. This may or may not result in an increase in the cost for the customer, but will result in acquiring more customers. Once in place, this could act as a new starting point for creating more Value-added services. Check 2: A value added activity is one that helps to sustain and enhance the quality of product/service. Activity: Identify, Enable and encourage the workforce to undergo relevant training and certifications. Explanation: A trained workforce enables to deliver better (efficient, cost effective, sustainable, innovative) products and solutions to the customer. At times the customers request for certified people. Check 3: A value added activity is one that helps to improve the organisation's public image. Activity: Implementing and getting certified/audited and becoming members in boards associations dealing with Environmental, Health and Safety standards and policies (other than those dictated by government policies). Explanation: In the modern world, the social responsibility of organisations plays a very critical role in its existence. These activities project a positive image of the organisational culture and give a feeling that their products and services are more trustable and will be of better quality. Check 4: A value added activity is one that provides customer an additional choice. Activity: Adding a new item to the menu in a fast food restaurant.. Explanation: Providing the customer more choices is critical especially in fast food business. Chances of a customer visiting a restaurant offering more choices in the same price range say under the Value Menu section, is higher than he/she visiting a restaurant offering fewer choices. Here it may be seen that the though the customer does not essentially pay more but it is still a “value add”. Instead of being a linear value add to a product, this can be seen to be more of a lateral value add to the menu which could result in an increase in the customers.