Value-added activity
A value-added activity contributes to a product or service function that the customer or relevant stakeholder requires. Activity analysis distinguishes these contributions from avoidable rework, delay or duplication, while recognising some compliance and control work is necessary even if customers do not directly perceive it. The classification should serve improvement decisions, not become an excuse to remove essential safety, legal or quality processes.
Worked example
Accurate assembly creates the function a customer purchases; correcting avoidable assembly errors consumes extra resources without adding the originally required function.
Common mistake
An activity can be necessary without being directly valued by the customer. Do not remove essential controls solely from a narrow label.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |