Question

What is an overhead activity of a non-profit homeless shelter that seems to qualify as a non-value added activity and why is this overhead activity a non-value added activity?

Answer 1

Non value added activities are those activities which do not add any value or function in the product or service.

One of such non value added activity of a non profit homeless shelter can be checking the quality of food or inspection of food that is served to people residing in homeless shelter. It qualifies as an activity as an non value added because checking or inspection of food neither adds quantity to the food nor the taste nor the variety. Some measures should be developed to minimise the inspection time and process.