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How do you determine value?

Written by: Joe Dager

Article Overview: How do you determine value? A relatively easy exercise is to start with a value stream map. Provide a graphical representation of the process flow, and then above it map the information flow that enables the process to occur.

How do you determine value?

How do you determine value? A relatively easy exercise is to start with a value stream map. Provide a graphical representation of the process flow, and then above it map the information flow that enables the process to occur. This will allow you to understand not only the activity of the service or product but also the flow of information or material as it makes its way through the value stream. The value stream map is a lean tool. In the book Lean Thinking, James P. Womack and Daniel T. Jones defined value stream mapping as: "Identification of all the specific activities occurring in a value stream for a product or product family." It is typically used in Lean as it differs from the process mapping procedure of Six Sigma in several ways:

• Higher level than many process maps

• Has a wider range of information.

• Identifies future projects, subprojects, and/or kaizen events

How do I use this in marketing? I simply take the Duct Tape Marketing hour glass(Marketing Funnel) or as I call it one of the Pillars in the Lean Marketing House and assign the processes to enable the flow. As you can see the natural progression of the flow (know, like, trust... flow to the right), the enablers or information to move the process forward is provided above each step.

Taking a group of current customers, you can identify this in your current process. If this seems to difficult, make a certain group that you can segment somehow and document the process. May companies will find huge gaps in their processes which are supported by other departments such as sales or service or maybe by repetitive marketing. Hmm! Sounds like an opportunity to find some waste or Muda!

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Article Tags: exercise, graphical representation, information flow, map, value stream



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