Which of the following is a value-added activity? Set-up Movement Machine Operations Inspection Solution Ans Set-Up Activities can be classified in to three 1. Value Added. 2.Non Value added 3.Essential Non-Value added Value added activities ,in a business, change the form , fit or function of the product or service. In other words these are the activities performed by a business for which customer is willing to pay a premium. From a cost reduction prespective classification of activities in to three categories assume a lot of significance since NVA and ENVA activities present the organisation cost reduction opportunities either by eliminating them or trimming . Set up is the value adding activity among the options provided in question since all other activities Movement, Machine operations and Inspection are either very routine activities or activities to compy with regulations such as inspection .

1. Which of the following is a value-added activity?
Set-up
Movement
Machine Operations
Inspection
Set-up
Movement
Machine Operations
Inspection
Solution
Ans
Set-Up
Activities can be classified in to three
1. Value Added.
2.Non Value added
3.Essential Non-Value added
Value added activities ,in a business, change the form , fit or function of the product or service.
In other words these are the activities performed by a business for which customer is willing to
pay a premium.

2. From a cost reduction prespective classification of activities in to three categories assume a lot of
significance since NVA and ENVA activities present the organisation cost reduction
opportunities either by eliminating them or trimming .
Set up is the value adding activity among the options provided in question since all other
activities Movement, Machine operations and Inspection are either very routine activities or
activities to compy with regulations such as inspection