Work Adding Value (value added)
The work performed in the process works is willing to pay by clients .
Second Condtion, the work must transform physical products. The work is done right the first time
Work that does not add value (non value added)
The process is not a requirement to produce an output or product.
This process or works does not add value to their products.
Examples are:
1. Defects, errors, exceptions
2. Setup, control / inspection
3. Output products, processes and excessive invertory
4. Transportation, movement, waiting time, delays etc..
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