What is value? and also just how carry out we identify tasks that add worth and also those that do not include value?

Value deserve to simply be identified as somepoint a customer is willing to pay to get. If a customer is not willing to pay for it, then tright here is no value. For instance, let"s say your agency manufactures widgets and you market free 24-7 customer assistance for your widgets. To provide the finest customer business you constantly have actually at least one knowledgeable technician accessible to answer customer inquiries 24 hours a day, salso days a week. On the other hand also, your competitor only provides email assistance, with a guarantee of acquiring a response within 48 hours, and they market their widgets for 5% less than the price of your widgets. Due to the fact that of their reduced price you are losing numerous significant customers to your competitor eexceptionally month. If this is the complete story, what is many likely the problem?

Your customers execute not location much worth on having actually 24-7, live customer assistance. They prefer the reduced price. That places 24-7 customer assistance in the category of waste.

You are watching: Which of the following is a value-added activity?

Defining Value

Everything we perform either adds value or does not add worth to the product or service our agency sells. Who determines whether value is being added? The customer does.

Let"s take the example of a receptionist who works for a manufacturing agency that makes widgets. Does this perboy add worth to the widgets? Who are the “customers” this perchild is serving? Her customers are the world that should fulfill via civilization from external the firm. That suggests her customers are human being in the purchasing, administration, HR, and also engineering departments. The receptionist is also protecting the company"s propriety indevelopment by only permitting authorized human being to enter the building. So the receptionist"s “customers” —the human being she is providing a company for— are all interior customers. If the receptionist is not providing value for those customers that exceed the expense of having actually a receptionist, they will either be reput or the receptionist position eliminated.

Anypoint or anyone who does not include value is waste.

Keep in mind that the receptionist is additionally indirectly including value to the products your firm ships to your customers. By conserving time for various other world in your firm, and protecting your company"s assets, tright here is value added to the product you are selling.

Value Added vs. Non-Value Added – The Seven Wastes

Lean manufacturing ethics divide waste right into salso categories. 


In enhancement, when talking around value added vs. non-worth included activities we have to incorporate the category of forced activities on the non-value included side. Let"s look at each of these, founding through required tasks.

Value Added vs. Non-Value Added – Required Activities

Required activities are those which need to be done, but they perform not necessarily add worth for either internal or exterior customers. The the majority of prevalent forced tasks are those compelled by legislation or federal government regulations. While some forced tasks do include value, in many kind of instances they are tasks that must be done, but they include no value. However, that does not mean they cannot be optimized, eliminating waste, to mitigate the expenses of the compelled tasks.

Some human being categorize organization activities such as HR (hiring) and structure maintenance as required company activities that perform not include value. However, these activities are not non-value adding required tasks. For instance, finding and also hiring the right human being, at the time as soon as they are necessary, and also doing it successfully, adds worth. An organization"s huguy resources are its a lot of vital sources. The HR department is giving an useful organization to each of the other departments within the company, that consequently enables them to do a better task of including value to the commodities they develop.

Waiting Time

This is one of the the majority of obvious wastes and also it plainly does not add value. For instance, if an equipment operator is killing time waiting for the next batch of components to arrive, tright here is waste that can be eliminated through better scheduling. However before, not all waiting time is wasted time.

Let"s say that a worker"s project is to unload large blocks of timber from a pallet and location them right into the inlet hopper of a finishing machine. He unloads them as easily as feasible so that the forklift through the pallet can percreate various other work, and then he waits around ten minutes for the next pallet to arrive. Is this waiting time wasted time? Not necessarily. In some work “waiting time” deserve to be practical remainder time that employees require if they are to proceed to do their task well.

However, in the example over, tbelow are many opportunities for enhancements for eliminating waste. For example, why does a perchild have to physically move huge blocks of hardwood. Might tright here be a far better means of doing this using machinery?

The interpretation of waiting time is idle time in which someone that can be doing something is doing nothing. Eliminating or reducing this idle time is eliminating waste and boosting the value included tasks.

Excess Motion

The term “excess motion” describes the motion of products, supplies, and also devices. In the over example, why is a forklift bringing blocks of wood from one area to one more location? Let"s say that in this instance timber is cut right into blocks in a sawing operation, then relocated to a warehouse for storage, and also then relocated on palallows to the area wbelow a worker loads the lumber blocks right into the finishing machine. Excess activity can be eliminated by having actually the finishing machine near the sawing procedure. The hardwood is then cut to the appropriate size and also instantly passed to the finishing machine, eliminating the need to relocate it in and also out of a wareresidence. The excess movement (transportation waste) of the lumber has been eliminated.

Excess Handling

Excess managing describes the unimportant tasks of employees and also the uncrucial taking care of of products, devices, and equipment. In the over example, why must a worker relocate the blocks of lumber from a pallet right into the hopper of the finishing machine? What if the blocks of wood came out of the experienced machine and also went directly into the finishing machine? The lumber blocks no much longer have to be taken on by an employee, eliminating that waste.

Excess Inventory

Inventory expenses money for the storage space and taxes on the inventory. Inventory rises the risks of shrinkage, spoilage, and also obsolescence. It additionally rises dealing with costs as items must be relocated in and out of inventory, and also man-hours have to be supplied to count the inventory on a continual basis. Only a minimal, absolute crucial inventory should be kept such that it is adding worth to the final product or company. Excess inventory is waste.


Let"s look at our hardwood block instance aobtain. In a week the sawing operation can develop sufficient wood blocks to keep the finishing machine gave for a month. Due to the fact that the sawing operation does the cutting for a variety of other commodities, it provides hardwood blocks for a week, through the blocks being stored in a wareresidence till they are necessary later on in the month. It does the same for 3 various other commodities. The result is 4 warehouses, each qualified of holding a month"s supply of the product necessary to make a product.

But what if the cutting operation spends simply at some point on each product? Each day it renders sufficient for four days of procedure of the finishing procedure for each product. The result is that each warehome only requirements to keep 4 days worth of product instead of four weeks. The inventory storage expenses along with the associated threats have simply been cut by 75% as the outcome of eliminating excess inventory.


Over-procedure implies that even more work is being put right into a product or company than is essential by the last customer. If the finishing process for the lumber blocks has applying ten coats of high-high quality epoxy paint via sanding and also polishing between each action, but the customer only requires that the finimelted blocks be painted black, there is as well much job-related going into the finishing procedure – meaning the additional job-related (and epoxy paint) is being wasted.


Overproduction means making more product than what is automatically required. If even more lumber blocks are being produced than are being offered, they will accumulate in a warehouse. This may make feeling if many hardwood blocks are marketed during the 4 weeks before Christmas and supply demands to be gathered before the holiday seaboy. In the majority of cases, over-manufacturing outcomes in high levels of wasteful inventory.


Defective products have to be thrown out or fixed. Defective solutions have to be done over. Doing things ideal the initially time is essential to eliminating waste. While eliminating all defects might seem like an difficult job, there are lean methods such as Poka-Yoke, that are so effective at eliminating defects that they additionally eliminate the must inspect for defects, developing even higher savings.

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Value Added vs. Non-Value Added – The Need for Signs and Labels


The correct usage of labels and indicators will assist your efforts to reduce and also get rid of waste. For instance, they communicate necessary information such as new or revised operating measures at the area and also time where the indevelopment is necessary. They carry out directions, guiding human being safely to their destinations. And they provide crucial safety indevelopment and also recognize the areas of safety and security devices. However, indicators and labels just work if they are posted, their message is clear, they remain in place, and are readable. To assist attain successful workplace methods and compliance, utilize DuraLabel industrial label printers and also tough-tested supplies by Graphic Products.