Chapter 86: Hourly Contribution to Value-Added on Variable Costs (HCVAVC) as a Concept and tool to Manage the Creation of Value Added

The HCVAVC makes it possible to measure the economic value generated by a unit of work time. In normal operation, when a solvent product (good or service) is generated, it generates an assessable value based on the hourly contribution to value-added over variable costs. The opposite reasoning leads to a non-contribution to the value added when a dysfunction appears and produces ipso facto a hidden cost.

The HCVAVC, coupled with the six areas of dysfunction, makes it possible to raise the awareness of the company’s actors to the notion of wealth creation and to make the strategic and operational management of the creation of socio-economic value added tangible.