Definition of Non-Value-Added:
A non-value-added activity is an action taken that does not increase the worth of what is delivered to the customer.
To be a value-added action, the action must meet all three of the following criteria:
- The customer is willing to pay for this activity.
- It must be done right the first time.
- The action must somehow change the product or service in some manner.
Therefore, by definition, if the action doesn’t meet all three of the criteria listed above, then it is non-value-added.« Back to Dictionary Index