Question

What are the three criteria that must be met for an activity to be considered value-adding? Give one example of a value-adding activity and one example of a non-value-adding activity.

Answer 1

Following 3 criterias must be met to for an activity to be considered as value-adding:

1) customer must be willing to pay for such activity

2) activity must transform the product/information/document/service

3) activity that is done correctly the first time

For example welding metal parts to transform metal in some useful shape is value-adding, whereas moving heavy metal parts for further processing or for storage is non- value-adding.

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