Value Added Activity

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A process or activity that adds value to a product or service. Value is judged by the customer, who can be the customer of the company, or an internal customer who receives the output of the process or activity. An activity or process adds value, if it satisfies all three of these requirements: (1) the customer is willing to pay for the process or activity, (2) the process or activity physically changes or transforms the process or activity, and (3) the process or activity is performed correctly the first time its undertaken.

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