Definition
The process steps that take time, resources or space without changing the product/service pattern and not adding value to the client. The ruling in the regulated process has changed: Non-value added = no contribution to compliance , not " whether the customer is willing to pay " .
In detail
Non-Value Added refers to steps that consume time, resources, or space but do not produce the value required by the process; it is the core object of waste identification in lean improvement. General business processes can be judged by "would the customer be willing to pay for it"; regulated processes must instead use "does it make a necessary contribution to regulatory compliance," and cannot apply the former definition (cross-reference with item [[value-added]]). It should also be distinguished from necessary but non-value-added activities, which cannot be eliminated for now but still need to be compressed. Typical output is a step list classified by definition, waste locations, and improvement opportunities.
Example in practice
In process optimization, Non-Value Added activities must be identified. For example, in a bank credit approval process, multiple repeated reviews and waiting for signatures were found not to add value. The team first confirmed whether these reviews were regulatory requirements—only after confirming they were not did they eliminate them; if they were regulatory requirements, they would be retained and improvements sought elsewhere. After elimination, approval time was shortened from 5 days to 2 days, improving Customer Experience.