If I’m being honest, I’ve never heard anyone outside of a Continuous Improvement function say that – unless they were trained in Lean Six Sigma (LSS). And yet it is fundamental to improving your product or service; either the speed in which it’s produced, the cost in which you produce it or the quality in which it was produced.
‘Value Adding’ is a task that is taken toward a service or product that adds value to the end state of that product. Ultimately you need to ask yourself the question, is my customer willing to pay for the service this area is providing? If the answer to that question is no, then it’s a ‘Non-Value Adding’ step.