Definition
Non-Value Added Activity is one that generates a negative, or zero return on the resources that are invested. It can usually be eliminated without impeding or impairing the whole process. These activities don’t create conformance to the customer’s specifications, and thus the customer isn’t required to pay a premium for them.
NVA activities include: reviewing, inspecting, testing/checking, filling in information, obtaining approval and reporting. Some of these activities are essential for traceability and accountability required to meet company and regulatory policies. These activities also, do not directly contribute to manufacturer’s profits overall.
Further Reading
- “Activity Based Management: Improving Processes and Profitability (Routledge Revivals)” (book), by Brian Plowman.
