Value Add VS. Non-Value Add

Value-Added (VA)

The step when the customer gets what they want from the process or what the customer wants or is willing to pay for (either directly or through taxes)

Any step in the process that improves the product or service for the customer

Any step that adds value from the customer’s perspective

Most processes have very few Value-Add steps

Non-Value Added (NVA) or Opportunity for Innovation

Any step or action that does not provide the value that the customer wants from the process.

Activities that do not contribute to the product or the process and should therefore be eliminated

Non-value-added steps are waste (may be something that has always been included in the process, or even an internal requirement we have created, but does not add any value)

Business Necessary Non-Value Added (BN/NVA)

Steps or actions that must be completed for legal or regulatory requirements

These are steps that are required by regulatory agencies and/or policies

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Value-Added (VA)

Non-Value Added (NVA) or Opportunity for Innovation

Business Necessary Non-Value Added (BN/NVA)

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