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Friday, January 3, 2020

Integrated Telecommunications Company (ITC)

Non-Value Added activities: These are those which do not add any value to the product or service but are an inherent part of the process. Customers are not willing to pay for such services. These activities prove to be a burden on the organization and affect its efficiency. Valuable resources in the organization are engaged in completing these activities despite the fact that such activity is slowing the progress of the organization.
There are several examples of Non-Value Added activities found commonly among different organizations. Some of the most commonly found are:
• Process steps which are not needed
• Unnecessary movement of goods or resources within or outside the organization
• Unnecessary paper work within or in between departments which is not required
• Rework due to defects found in products
• Corrections or rechecking done due to important process steps not completed properly
• Services to customers(inside and outside) not properly delivered leading to customer dissatisfaction
• Unnecessary storage of raw materials or finished goods or storing more than required
• Important Organization resources such as expensive machinery or labor lying idle or waiting for work as inputs not delivered on time
• Delay in delivery to customers (inside and outside) due to unnecessary waiting time
Non-Value Added activities cause customer dissatisfaction by late delivery of goods and services which affect the credibility of the company as it is not able to deliver as per the committed/planned schedule. Also, the cost of such products and services is much more which ultimately customer is paying for. In such a scenario, customers will only stay with the company till the time they are able to find a suitable alternative.

Kumar, P. (2019, April 24). Value Added and Non-Value Added Activities in Lean. Retrieved from
Stevenson, W. (2018). Operations management (13th ed). Boston [etc.]: McGraw-Hill/Irwin.

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