The Value of Non-Value Activities

The essence of manufacturing is first an idea, then a facility, then the purchase of raw materials, then hiring of labor, then we turn on the electricity and transform raw material into our product. This essence gives a foundation we can build on. Many believe only value-added activities such as materials and labor add value to the product. However, others believe that activities such as inspections, machine setups, and even wait time adds value to the product. The premise of this paper is anything you are willing to pay for has value, even if it labeled a “so-called” non-value-added activity and buyers willingly pay for non-value added activities every time a product is purchased. The question becomes: “What is the value of Non-Value added activities?”