Value-added activity

A value-added activity is any action taken that increases the benefit of a good or service to a customer. A business can vastly increase its profitability by recognizing which activities increase value and which do not, and stripping away the non value-added activities. In most organizations, there is a much lower proportion of value-added activities than of non value-added activities.

Related Courses

Constraint Management 
Lean Accounting Guidebook 
Project Management