Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 61

High-Value-Added and Low-Value-Added Activities The Lindex General Hospital has determined the activities of a nurse including the following:

a. Report for duty and review patient charts

b. Visit each patient and take her/his temperature

c. Update patients’ records

d. Coordinate lab and radiology works

e. Wait for the attending physician to arrive

f. Accompany attending physician

g. Explain treatments to patients

h. Call kitchen to have the wrong meal tray replaced

i. Perform CPR

Required Classify each item as a high-value-added or a low-value-added activity.

Step 1 of 4

Value Added Analysis:

Value added analysis analyze all the activities of the organization and divide them into high value added activity and low value added activity.