Value Analysis
Libbel Enterprises has been in business for 30 years. Last year, the company purchased Chemcraft Laboratory and entered the chemical processing business. Libbel’s controller prepared a process value analysis of the new operation and identified the following activities:
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New product research |
Product sales |
Product bottling process |
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Design testing |
Packaging process |
Product warranty work |
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Materials storage |
Materials inspection |
Product engineering |
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Product curing |
New product |
Purchasing of direct |
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process |
marketing |
materials |
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Product scheduling |
Product inspection |
Finished goods storage |
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Product spoilage |
Product delivery |
Cleanup of processing areas |
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Customer follow-up |
Materials delivery |
Product mixing process |
Identify the value-adding activities in this list, and classify them into the activity areas of the value chain. Prepare a separate list of the non-value-adding activities.