Value Added Time

Business, Legal & Accounting Glossary

Definition: Value Added Time

Value Added Time

Full Definition of Value Added Time

The time spent that improves the outcome of a process is referred to as value added time. Typically, this is just the processing time associated with production. All other intervals associated with a process, such as wait time and queue time, add nothing to the outcome and are thus classified as non-value added time. This concept is used to identify non-value added activities and remove them from a process, thereby reducing the total time required to complete a process. When the duration of the manufacturing process is reduced in this way, it can provide a competitive advantage because a company can respond to customer demands more quickly.

It may be possible to shorten the amount of time spent adding value in a process. However, because non-value added time accounts for such a large portion of total processing time, it is usually easier to start by eliminating or reducing it.

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Page URL
Modern Language Association (MLA):
Value Added Time. Payroll & Accounting Heaven Ltd.
June 27, 2022
Chicago Manual of Style (CMS):
Value Added Time. Payroll & Accounting Heaven Ltd. (accessed: June 27, 2022).
American Psychological Association (APA):
Value Added Time. Retrieved June 27, 2022
, from website:

Definition Sources

Definitions for Value Added Time are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th April, 2022 | 1 Views.