Productivity is equal to output divided by input. This ratio measures how well resources or inputs are utilized to create the desired outputs. One measure of output is value added (VA). Using data from a company’s financial statements. It is derived from the definition of VA as the “wealth” created by the products and/or services generated by an organization through the collective effort of those who work in the organization (i.e., employees) and those who provide the capital (i.e., employers, investors)

Learning Objectives

• Purpose of Value Added
• The Concept of Value Added
• Non-Value Adding Activity in Organizations
• Value Added Productivity Measurement Approach
• Analysis of VAPM Ratios
• Utilizing the Result of VAPM For Productivity Improvement
• Quick Management Analysis (QMA)
• Profitability Ratio
• Benefits of VAPM

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