ValueAdding
Valueadding, or value-added activities, are actions that increase the worth of a product or service from the customer’s perspective. A value-added activity transforms inputs into outputs in a way that customers are willing to pay for, such as improving functionality, quality, performance, or convenience. The concept contrasts with activities that do not change the product’s value for the customer but are necessary for operations, like certain administrative tasks or storage.
In production and service delivery, activities are often classified as value-added, non-value-added, or necessary non-value-added. Value-added
Common value-added activities include design, fabrication, assembly, testing, packaging, branding, installation, and after-sales support. Intangible value
Strategically, organizations seek to amplify value-added activities while outsourcing or streamlining non-value-added tasks. Caution is warranted,