Libbel Enterprises 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 process

New product marketing

Purchasing of direct 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 Exhibit 1 in this chapter.

I assume it would be...

Research and Development: New Product Research

Design: Design Testing

Supply: Purchasing of Direct Materials

Production: Product Curing Process and Product Bottling Process

Sales and Marketing: New Product Marketing

Distribution: Materials Delivery

Customer Service: Customer Follow Up

I however would not have thought customer follow up would be considered value adding, I also thought Product Engineering, Product Mixing Process, and Product Sales would be considered Value Adding but I think there isn't a spot for them...

Groups are;

Research and Development

Design

Supply

Production

Sales and Marketing

Distribution

Customer Service