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Thursday, January 2, 2020

Value Added and Non-Value Added Activities in Lean

Lean is one of the most dynamic methodologies that aim at always looking at improvements in all business processes. Value Added and Non-Value Added Activities in Lean are ways to identify waste and taking steps to eliminate them. Waste in lean is considered to be like poison which has to be eliminated at all costs. Business activities in Lean are divided into two broad categories – Value Added and Non-Value Added.
Value Added activities: These activities are those which adds value to a business process or product and for which customer is willing to pay. Value Added activities help in converting a product from a state of raw material to a finished product in the least possible time, at minimum costs. It aims at completing a business activity correctly the very first time, and helping the business to deliver the product or service while fully conforming to customer requirements or specifications.

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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