Old definition “Value Added” If the material is used in the product and the employees works on it, it’s “Value Added”.  Non-value-added tasks are packaging it and shipping it. A friend of mine always says people buy the pizza not the pizza box.  However, if you ever had a cheap box and the cheese stuck to the top of the pizza box, then you rethink the importance of non-value items and task. When my friend said people don’t buy the pizza box, he was emphasizing that the box was not important.  Some pizza places spend a great deal of money on the graphics on the box and the sturdiness of the box. He was saying all he wants is the pizza, he didn’t care about the box.

The attitude of “some non-value-added steps are necessary” has created a negative attitude to non-value-added costs.

There were many non-value-added steps that were wasteful and unnecessary steps that needed to be eliminated but many corporations went overboard with the idea and eliminated too many jobs, expenses etc. by downsizing.  Instead of focusing on how cheaply they could make the product, they should have been focusing on how they could educate the consumer and sell a quality product.  Everyone wants both cheap price and quality product but most of time those items are mutually exclusive.

Being an accountant, I’ve been non-value added for a long time and I’m fighting back.

I believe corporations are beginning to realize that just because you can’t see it, touch it or quantify it doesn’t mean it doesn’t add value.

Software and Branding consultants are in the same boat I’m in.  Owners don’t want to spend money on it because of this ridiculous value-added theory.

Software that gives the Scheduling Department the correct inventory, gives Customer Service Department information on their customers with a stroke of a key, Shipping Department shipping on-time and the Accounting Department delivering fast and accurate financial reports, KPIs, dashboard and scorecards is priceless.

So now when someone calls me non-value added.  I say, “Yes, I’m priceless.”