A nonvalue-adding activity is one that increases the cost of a product but does not add to the product's market value.

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Nonvalue-adding activities are those that do not add any value to a product or service but increase its cost. As a result, they lead to higher costs and reduced profits. Examples of nonvalue-adding activities include unnecessary inspections, rework, excessive inventory, and overproduction.

A Nonvalue-Adding Activity Is One That Increases the Cost of a Product