value-added analysis

Value-added analysis is a method used to evaluate how much a specific activity or process contributes to the overall value of a product or service. It involves identifying which steps directly improve quality, efficiency, or customer satisfaction, and distinguishing them from activities that do not add value, such as unnecessary delays or redundant tasks. This helps organizations focus on enhancing valuable activities, reducing waste, and improving overall performance. In essence, it’s a tool for understanding where resources are best invested to create the most value for customers and the business.