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For Lean practice, what techniques are used for defining customer value and how is the information recorded and presented?

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Value is the high quality outcome of an organisation that the customer is willing to pay for.

Important notes:

  • there is a difference between output and outcome. The output is the product, the service etc. your company is providing. The outcome is the positive difference the outputs make

  • the value is always looked from the customer's perspective

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Companies measure 'value' in different ways. I've seen places that boil everything down to cash values and some where 'T Shirt sizes' or relative estimates of value are used.

There's nothing wrong with any of these approaches. The important thing is that there is enough granularity in order for you to make decisions and that it's consistent across products/projects/features in order for you to be able to compare them.

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That is not how Lean describes value. Zsolt's answer is. Value in lean is very specific for a reason. – Andrew Clear Feb 28 '13 at 20:02
Agreed - I was just making the point that the unit of measurement is unimportant provided you're consistent. Admittedly that didn't really answer the question now I've re-read it! – Ben Mar 4 '13 at 14:25

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