Non-value-added activity
A non-value-added activity consumes resources without contributing to the required customer function, such as avoidable rework, waiting or duplicate data entry. Analysis seeks to remove the cause rather than merely cut the allocated cost. Some activities may be necessary under current technology or regulation and cannot be safely eliminated immediately. Evaluate how change affects quality, risk and the wider process before claiming a benefit.
Worked example
Duplicate manual entry causes reconciliation effort; integrating validated data can remove both the duplicate step and some resulting errors.
Common mistake
A cost assigned to an activity will not necessarily disappear when activity time is reduced; resource commitments and redeployment matter.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
