Definition
DBS refers to the process or operation of shaping/transforming the product or service into the final form that the client is willing to purchase.
In detail
Value Added refers to the process or activity that transforms a product or service into the final form the customer is willing to pay for. In the lean system, it is the baseline for distinguishing Muda from non-value-added activities: only activities the customer is willing to pay for count as value-added; all others are Muda or necessary non-value-added. It is the opposite of "Non-Value Added"; in regulated processes, regulatory compliance activities are instead classified by "whether they contribute to regulatory compliance" and cannot directly apply "whether the customer is willing to pay," cross-referencing entry [[nva]]. It is typically output as value-added time markers in a value stream map, used to calculate the Value-Added Ratio and guide Kaizen direction.
Example in practice
When drawing a value stream map, the team needs to distinguish value-added from non-value-added activities. For example, in the order processing flow, completing quote calculations for the customer and processing the product are value-added, while internal repeated approvals may be non-value-added. By marking value-added time, the team found that the Value-Added Ratio was only 5%, thus focusing on eliminating waiting, repeated approvals, and other Muda, ultimately shortening the Lead Time.