Asked by Yasmin Garcia on Jun 30, 2024
Verified
One approach to cost reduction is to undertake value engineering where an analysis of design and production takes place with an aim to identify and eliminate non-value-adding activities.
Value Engineering
A systematic method aimed at improving the "value" of goods or products and services by using an examination of function. Value is the ratio of function to cost.
Non-value-adding Activities
Tasks or processes that do not add value to the final product or service from the customer's perspective.
- Comprehending the notion and significance of value-added activities in augmenting value for both customers and businesses.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
True
Explanation :
Value engineering involves analyzing design and production processes to identify and eliminate non-value-adding activities and reduce costs.
Learning Objectives
- Comprehending the notion and significance of value-added activities in augmenting value for both customers and businesses.