E 4. Libbel Enterprises has been in business for 30 years. Last year, the company purchased Chemcraft Laboratory and entered the chemical processing business.

Libbel’s controller prepared a process value analysis of the new operation and identified the following activities:

New product research Product sales Product bottling process Design testing Packaging process Product warranty work Materials storage Materials inspection Product engineering Product curing New product Purchasing of direct process marketing materials Product scheduling Product inspection Finished goods storage Product spoilage Product delivery Cleanup of processing areas Customer follow-up Materials delivery Product mixing process Identify the value-adding activities in this list, and classify them into the activity areas of the value chain illustrated in Figure 19-1. Prepare a separate list of the non-value-adding activities.

Value-Adding Activities