QuestionJuly 21, 2025

Activities related to internal failure such as rework scrap, and engineering change orders are value-added activities since they cannot be eliminated without increasing costs elsewhere in the value chain. True or False True False

Activities related to internal failure such as rework scrap, and engineering change orders are value-added activities since they cannot be eliminated without increasing costs elsewhere in the value chain. True or False True False
Activities related to internal failure such as rework scrap, and engineering change orders are value-added activities since they cannot be
eliminated without increasing costs elsewhere in the value chain.
True or False
True
False

Solution
4.3(151 votes)

Answer

False Explanation 1. Define Value-Added Activities Value-added activities directly contribute to meeting customer needs and enhancing product value. 2. Analyze Internal Failure Activities Internal failure activities like rework, scrap, and engineering change orders do not add direct value to the customer but are necessary for quality control. 3. Determine if They Are Value-Added Since these activities do not enhance customer value directly, they are considered non-value-added.

Explanation

1. Define Value-Added Activities<br /> Value-added activities directly contribute to meeting customer needs and enhancing product value.<br />2. Analyze Internal Failure Activities<br /> Internal failure activities like rework, scrap, and engineering change orders do not add direct value to the customer but are necessary for quality control.<br />3. Determine if They Are Value-Added<br /> Since these activities do not enhance customer value directly, they are considered non-value-added.
Click to rate:

Similar Questions