Question

Which of the following statements is (are) true about non-value-added activities?

I. Non-value-added activities are often unnecessary and dispensable.
II. Non-value-added activities may be necessary but are being performed in an inefficient and improvable manner.
III. Non-value-added activities can be eliminated without deterioration of product quality, performance, or perceived value.

Answer 1

I, II and III are statements that are correct about non-value-added activities.

Step-by-step explanation:

Activities that don't exactly add value(s) to a product or service are called non-value-added-activities. Though they are often times dispensable, it does not mean they are not important or necessary. Sometimes they form an inherent part in the design process of the product or service in question. Examples of such activities are filing of product/service documentation, inspecting the product/service, reviewing of the product/service and obtaining approvals. Therefore, non-value-added-activities may be necessary but are most times being performed in an inefficient and improvable manner and can be eliminated without necessarily deteriorating the quality of the product/service, its performance or perceived value.

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