Value Added and Non-Value Added Activities (Q6)

Value Added activities

These activities are those which adds value to a business process or product and for which customer is willing to pay.

Value Added Activities must satisfy the following criteria:

  • Work that physically transforms the product (or document/information)
  • Work that is done right the first time

One easy way to remember this definition is to use the acronym CPR, which stands for: Customer pays for it, Physically transforms the product, Right the first time.


Non-Value Added activities

These are those which do not add any value to the product or service but are an important part of the process.

  • Customer contract or specification
  • Industry standard such as ISO 9001
  • Government regulation
  • Outdated work method or equipment
  • Process steps which are not needed
  • Rework due to defects found in products

It is always important to look to minimise these elements where possible, but not as far as to impact on the quality.


Last modified: Thursday, 3 September 2020, 3:50 PM