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Eliminating Non-Value-Adding Activities

How to Reduce Costs Without Cutting Customer Satisfaction

A Two-Day Seminar

This two-day seminar is not currently scheduled.  Click here to view the e-learning version of this course

Every organization wants to cut costs…but how do we cut costs without damaging customer satisfaction and future sales? The answer lies in your processes.

Business processes are the engines that produce value for your organization’s customers; they also generate most of your operational costs. Unfortunately, 20% of all manufacturing costs and 30% of all service costs are attributable to process activities that do not add value.

To be most effective, your organization must:

  • Understand what features, benefits and services are most important to your customers
  • Identify the process activities that deliver those desired outcomes
  • Streamline or eliminate all other non-value-adding activities

Cut Costs by 20-30% Without Sacrificing Customer Value

Effective process streamlining must begin with a firm understanding of who the customer is and how he or she defines value, lest we create a more efficient system for “garbage in, garbage out.” Eliminating Non-Value-Adding Activities will demonstrate how to:

  1. Define and clarify customer expectations
  2. Clearly identify the activities that are truly “value-adding”
  3. Find process improvements that will maximize the value produced

With customer value protected, you can move aggressively to minimize or eliminate waste and other activities your customer doesn’t want to pay for. Eliminating Non-Value-Adding Activities will demonstrate how to:

  1. Quantify the time and cost associated with non-value-adding activities
  2. Leverage process streamlining techniques to improve workflow
  3. Consolidate, restructure and automate processes to reduce costs

This practical, how-to-do-it seminar will arm you with the knowledge and tools you need to analyze the way your organization generates value and cost, to identify opportunities to reduce cost without damaging value creation, and to implement management methods that will maximize the bottom-line impact of your organization’s core processes.

You Will Learn How to:

  • Define value from the customer’s perspective
  • Determine which process activities create value that your customer will pay for
  • Dramatically reduce operational costs by optimizing value-adding activities and eliminating non-value-adding activities
  • Track and manage process cost drivers
  • Improve profits without sacrificing customer satisfaction

Seminar Outline

  1. Defining and Creating Customer Value
    • Identifying customers
    • Defining and prioritizing expectations
      • Kano Model and Value Assessment Matrix
    • Determining your most important customers and what they value
    • Understanding the “Voice of the Customer”
      • How do your processes create value the customer desires?
    • What’s the right process to improve?
  2. Reducing Unnecessary Costs
    • Identifying Non-Value-Adding (NVA) work
    • Finding waste, delays, and unnecessary inspection
      • Activity analysis
    • Improving process flow
      • Value stream mapping
    • Minimizing and eliminating NVA
    • Value metrics
  3. Managing Ongoing Process Costs
    • How your processes generate costs
    • Developing a cost model
      • Identifying cost drivers
    • Minimizing process cost
  4. Bringing It All Together
    • Opportunities for improvement
      • Prioritizing opportunities
      • Improvement strategies
    • Obstacles to success
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