Non-value adding activity
Actions or activities in a process,
procedure, or service that do not add value to the external customer, (customer
requirements), or company and do not meet all three criteria for value-adding
which includes rework, inspection, control, and
the like. These are usually not profitable activities, for example scrap.
One major goal of any six sigma endeavor is to reduce any activity that
does not add value.
Some non-value adding activities are
necessary and cannot be avoided. One needs to look at these activities to
see if they could be included in value adding activities or eliminated
which should aid to reduce the cost and get a better ROI, (return on
investment) or RONI, (return on net investment).
Also see our articles on Waste-Free
Industrialized System and Design
Margin - Statistical Tolerance.
