Customer-Oriented Organizational Charts LO23238

Winfried Dressler (
Mon, 15 Nov 1999 18:42:35 +0100

Replying to LO23190 --

Dear Michael,

>The learning from understand the overall value-stream and how
>one creates or can create new value is very powerful.


>The broadbased perspective helps to generate many new ideas.


>PS If it is OK I will use your "create value" expression in the


>But, I don't think I agree with your conclusion that adding
>implies an internal view.

Well, for me, value is a quality, not a quantity. Something that increases
by adding more and more is a quantity. What is added during the work flow
is work, work is a quantity. Whether this work finally lead to the value -
quality - the customer is ready to pay for is highly contingent.

For example, you start with a sheet of metal. This sheet could be used as
raw material for many products, so it has it's value - at least you were
willing to pay money for it to get it as raw material for your attempt to
create a more valuable product out of it by performing work. But whether
you get the higher value is not a continuous increase in value - in fact
the value of your raw material DECREASES during cutting and bending and
whatever - you couldn't sell those intermediate states of the material.
Only when everything is fixed, operating and not scraped AND the customer
bought it, the value mysteriously, emergently, was there. You have created
the quality - value for your customer.

This doesn't touch the value of the 'added value' - the value for your
customers minus the value of the raw material incorporated -concept for
economical reasons, as John Zavacki pointed out.

Liebe Gruesse,



"Winfried Dressler" <>

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