Per Hoerl and Snee argue that the elimination or reduction of Non-value Added work is a critical step in augmenting efficiency and profitability of the business process, and I agree with this claim. This is because Non-valued-added works are contrary to Value Added activities as they entail works that consume resources and do not add value to the service or product. On the other hand, Value Added activities are those which entail the critical elements of the products or services being relayed to the consumers, and they are thus willing to pay for them (Reels, 2019). Therefore, minimizing the Non-value Added activities can significantly increment the profitability by eliminating unnecessary processes that use resources, thus increasing the profit margins. It also decreases the time consumed in the creation of a service or product, thus increasing efficiency in the process. This subsequently translates to higher productivity and hence more revenues and profits. In this manner, companies should strive to decrease as much Non-value Added works as possible in order to attain optimum efficiency and productivity.
Response to Nneka
Hello Nneka, I concur with you on the concept of reducing or eliminating Non-value Added activities as claimed by Hoerl and Snee because they are unnecessary and cumbersome and add costs, and consumes more time in the delivery of services or goods to consumers. I also concur with you on the instance of the steak that you used, and I think sometimes it is inevitable in business, and while it is very difficult to completely eliminate non-Value Added works, it is essential that businesses try as much as possible to eliminate them. Mistakes are bound to happen, and there are other necessary Non-Value Added works for the continuity of the business because you cannot just tell the customer to go away if the meat has not been cooked perfectly and so you have to redo it just to please the customer so that you can retain them and avoid extra customer acquisition costs considering how difficult it is to get a new customer after losing one; especially those who are loyal.
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References
Beels, M. (2019). What is Value Added vs. Non-Value Added Work? Retrieved 26 October 2020, from https://www.the-center.org/Blog/February-2019/What-is-Value-Added-vs-Non-Value-Added-Work#:~:text=Non%2DValue%20Added%20Activities%20involve,to%20the%20product%20or%20service.&text=These%20are%20activities%20that%20do,service%2C%20but%20are%20currently%20necessary.
