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Necessary Non-value-adding

Necessary non-value-adding activities are those activities that are not creating value for the customer but are necessary under the current operating system, equipment, or business environment. These processes and activities are required for the business to operate, though they add no value from the customer's perspective. These processes include external and internal regulations or requirements that the business must follow.

What Small and Midsize Businesses Need to Know About Necessary Non-value-adding

Usually, businesses should eliminate non-value-adding activities from their processes. However, necessary non-value-adding activities must remain in place; otherwise, the business is at risk of being out of legal or regulatory compliance.

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