ECONOMICS

Detailed explanation-1: -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. Non-value-added activities are also called “wastes, ” as delved in the last article.

Detailed explanation-2: -The value-added activities are the activities that will take the product or service towards its completion. In a manufacturing organization, the value-added activities are those that transform the product from raw material to its finished form for which the customer is willing to pay.

Detailed explanation-3: -Value-Added Activities are those that transform raw materials (plastic, lithium, copper) into the finished product (a smartphone) for which the customer is willing to pay. Some examples include molding, cutting, drilling or assembling parts.

Detailed explanation-4: -Activities or processes that do not, in themselves, meet the criteria of value adding activities, but which must be performed in order to make it possible to perform value adding activities. The activities involved in the development of most software applications are value-enabling activities.