Activiy elimination focuses on non-value-added activities. One activities that fail to add value are identified, measures must be taken to rid the organization of these activities. For example, the activity of inspecting incoming parts seems necessary to ensure that the product using the parts functions according to specifications. Use of a bad part can produce a bad final product. Yet , this activity is necessary only because of the poor-quality performance of the supplying firms. Selecting suppliers who are able to supply high-quality part or who are willing to improve their quality performance to achieve this objective will eventually allow the elimination of incoming inspection. Cost reduction then follows.