Evaluate value against the verified operating decision or change, including the manufacturer's implementation effort and any effects on safety, quality, delivery, and flow.
Establish the Starting Condition
Define the current measure, its calculation, observation period, operating mix, and data source. Without that definition, a later comparison may combine unlike conditions.
Count the Full Effort
Include consulting fees, travel, internal labor, tooling, downtime, software, training, and ongoing ownership where they apply. Exclude assumed benefits that have not been observed.
Verify the Operating Effect
Use the measure tied to the project: completed good output, setup duration, queue time, recurring stops, decision risk, scrap, or another agreed result. Watch for changes that move loss elsewhere.
Schedule the Value Review Before Work Starts
- Agree on the baseline definition and representative comparison period.
- Record implementation costs and internal effort, not consulting fees alone.
- Assign an owner for the measure and a date for review.
- Check whether an apparent gain moved waiting, scrap, overtime, or risk elsewhere.
- Document what was adopted, changed, or rejected and why.
When the benefit cannot be converted responsibly into dollars, report the verified operating effect instead of inventing a financial return.