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Necessary Non-value-adding
Necessary non-value-adding activities are those activities that are not creating value for the customer but are necessary under the current operating system, equipment, or business environment. These processes and activities are required for the business to operate, though they add no value from the customer's perspective. These processes include external and internal regulations or requirements that the business must follow.
What Small and Midsize Businesses Need to Know About Necessary Non-value-adding
Usually, businesses should eliminate non-value-adding activities from their processes. However, necessary non-value-adding activities must remain in place; otherwise, the business is at risk of being out of legal or regulatory compliance.
Related terms
- PDM (Product Data Management)
- Project Management
- Gain Sharing
- Small and Midsize Business (SMB)
- Business Process Automation (BPA)
- Human Capital Management (HCM)
- Best Practice
- Business Process Management (BPM)
- Business Impact Analysis (BIA)
- Track And Trace
- Digital Business Transformation
- Bimodal
- Span of Control
- Solution
- Business Process Re-engineering (BPR)
- Enterprise Solutions
- Growth Strategy
- Project Management Office (PMO)
- Business Process Outsourcing (BPO)
- Line Of Business
