|
A non-value added activity is one that provides the business
process with no competitive advantage because it does not perform
cheaper nor better than the competition. Such activities should
be targeted in process improvement because they offer the most
obvious sources of positive change, using various approaches:
- Outsourcing – it
might be possible to hire another party to perform the activity
at a reduced cost, more rapidly,
or with improved quality.
- Eliminating – it may be possible to eliminate
the activity by innovating product design (making the activity
no longer necessary), combining activities (making it part of
another activity), or even “selling off” processes
that involve too many non-value added activities.
|
