Waste Defined

There are many wastes that can occur in a process. These wastes make your organization less able to achieve your objectives; it uses your limited resources in ways that do not contribute to your organization’s overall goals.
Value-add activities are those that add value to the organization in money or time. Non-value adding activities, on the other hand, do not contribute directly to revenue generation and should be eliminated as soon as possible. Value-added income could come from a variety of sources, including salaries for employees who work overtime or perform tasks outside their job description; upselling services offered by salespeople; advertising revenues generated through marketing channels such as TV ads and internet banners (in which case you’re paying your customers); and down sells where you convince customers not to buy an expensive product they were considering because there is a less costly option available with all features intact.