ECONOMICS

Detailed explanation-1: -Things like searching for information, dealing with errors from previous steps in the process, processing mistakes, excessive walking and moving around, meetings, setting up machines or processes and waiting for others to provide you work or information, are all typical examples of non value added activities.

Detailed explanation-2: -Examples of non-value adding activities are loading and unloading activities, inventory, inspection, material handling, rework, etc. These activities do not create values to the products but they are performed several times a day and also require labor, handling equipments, and IT system to operate them.

Detailed explanation-3: -Frequently Asked Questions (FAQ) about non-value-added They are transportation, inventory, motion, waiting, overproduction, over-processing, defects, and non-utilization of the skills or of personnel.

Detailed explanation-4: -Value-Added Activities: These are those activities for which the customer is willing to pay for. Non-Value-Added Activities: These are those activities for which the customer is not willing to pay for. They only add to cost and time.