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Process Value Analysis

A Strategic Approach to Cost Reduction and Process Improvement
A Two-Day Seminar

Business processes are the heart of your organization. They are the collections of activities that create value for your customers. According to strategy authority Michael Porter, these activities are the ultimate source of competitive advantage.

“There are just two types of competitive advantage…Cost advantage arises because a firm can cumulatively perform the discrete activities in a business more efficiently. Differentiation depend instead on a firm’s ability to perform particular activities in unique ways that create buyer value.”

Process Value Analysis enables you to pursue both paths.

Increasing Customer Value

The business process (or value chain) is the engine that produces value in the form of products or services a customer will pay for. Effective process improvement must begin with a thorough 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”.

  • Define and manage customer expectations
  • Understand how value accumulates in your value chain
  • Determine which process improvement investments will maximize the value produced

Increasing Process Efficiency

On average 20% of all manufacturing process costs and 30% of all service process costs are attributable to non-value-added activities. Process Value Analysis will help you find, quantify and eliminate those wasteful activities.

  • Reduce costs without sacrificing customer satisfaction
  • Establish an activity costing system to manage process costs
  • Increase capacity by improving utilization of existing resources

What You Will Learn

  • Dramatically reduce operational costs by optimizing value-added activities and eliminating non-value-added activities
  • Explore customer expectations and define value from the customer’s perspective
  • Identify which steps add value for the process customer…and those that don’t
  • Determine which investments in process improvement will deliver the most “bang for the buck”
  • Utilize activity/process analysis to assign costs
  • Use Activity Costing to improve processes
  • Manage company costs in terms of what you do (processes), not resources consumed
  • Gain competitive advantage by reducing cycle time
  • Develop better financial and non-financial performance measures
  • Improve profits without sacrificing customer satisfaction

Who Should Attend

You will benefit most from this learning experience if you are a:

  • Director/Manager of Operations, Administration or Manufacturing
  • Process Manager or Engineer
  • CFO, Controller or Manager of Finance
  • Director of Quality
  • Member of a Process Improvement team

Differentiation depends instead on a firm’s ability to perform particular activities in unique ways that create buyer value.

Michael Porter

Competitive Strategy Revisited

Process Value Analysis is a valuable two-day investment for operations and financial professionals alike. Enroll a team of key leaders today.

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 while maximizing value creation and to implement management methods that will maximize the strategic, bottom-line impact of your company’s core processes.

Seminar Outline

  1. Defining and Maximizing Customer Expectations
    • Understanding who your customers are
    • Who are your most important customers?
    • Identifying and prioritizing customer expectations
    • Assessing performance vs. expectations
  2. Looking for Value (and Non-Value) in Your Processes
    • Which processes impact customers and key strategic objectives?
    • Using tools to document your processes
    • Identifying non-value-added activities
    • Your processes: Assets or Liabilities?
  3. Allocating Costs Across Cross-Functional Processes
    • Allocating process costs across multiple functional cost centers
    • Identifying the “true cost” of your processes
    • Understanding the true costs of your products and services
  4. Making Value-Based Decisions
    • Prioritizing improvement initiatives
    • Scrutinizing opportunities for incremental improvement, reengineering or other process-based strategies

Credits: 13 PDUs/CDUs and ABPMP professional development hours.


No dates are scheduled for this seminar at this time. Please complete the form below if you'd like us to contact you when dates have been added. We can also bring the class to your organization.

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