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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.

 

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Last Updated: Saturday, 10-Jun-06 15:50:57 PDT

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