Business necessary or Business value added

  This type of work activity does not meet the criteria of value added work, mainly because a customer is not willing to pay for the activity or the work.  The work although not considered value added work is necessary to either protect the company or comply with regulatory requirements.

Tip:

  Although business necessary work can not always be eliminated right away these activities should still be reduced or minnimized as much as possible until they can be removed.


Question:

  John is inspecting a set of tires after changing the rims.   

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