Valued Analysis

7 waste types
People
Motion
Incorrect layouts
Lack of proximity of machines
Off-line resources
Waiting Time
Waiting workers, machines, materials
Long set-ups and lead times
Process
Overproduction
Large batches, raw material stocks
High WIP, finished goods stocks
Making for the sake of it
Ignoring customer demands
Processing Time
Long cycle times- process, itself
Reduced efficiency- over processing
High overall lead times
Defects
Long delays for rectification
Costly rework
Dissatisfied customers
Inspection
Approvals of approvals
High number of verification steps
Reliance- Mass inspection techniques
Product
Transportation
Unnecessary movement
Extra handling
Definitions
Value Added
Any activity or operation performed that
helps transform a product or service
from its raw state into its finished form.
Completed right the first time.
Any activity customer is prepared to pay
for. Activity required to ensure that a
product or service is delivered in
conformance to specification.
Non-Value Added
Any activity that doesnt help to
transform a product or service into its
final form. Activity not performed right.
Activity customer not willing to pay for.
This includes:
Unnecessary process steps
Movement of inventory, paperwork, etc.
Re-work, corrections, etc.
Storage between operations, batching inventory
Queue
Wait times, delay times, idle times
(reference: Time-Value Analysis
VA/FA Steps
Step 1
Define and describe process to be analyzed
Project charter
Clearly define goals
Cost benefit analysis
Signatures Champion, Controller, Belt (minimum)
Time Frame for completion
Step 2
Map the process and determine major
and minor activities
Start with the customer
Customer receiving department of an
output, the next person in line, or the
(external) Customer
Conduct detail inquiry of what occurs
Use investigative questions
Step 3
Identify value-added activities or processes
Utilize investigative questions
What does it do?
Why does it work?
What must it do or accomplish?
How does it relate to other systems,
units, or components?
What requires this step to be done?
Step 4
Calculate the time spent on value-added
activities or processes (Value Stream
Map)
Spread Sheet Analysis (VA to NVA ratios)
Time-Value Analysis
Destination Points
Does the decision point represent as
appraisal, a review, or an inspection
which could be eliminated if prevention
were built into the process at an earlier
point?
Is this a necessary decision or can the
process proceed without a decision here?
Is there repetition of decision within the process?
Value Added
Does each activity within the process
add value to the output, the product, or
service which the customer receives?
Is the activity necessary to meet the
customers requirements and
expectations?
Would the customer be willing to pay for
that step of the process if the customer
knew it existed?
Activity Flow
Does the process move frequently back
and forth between various units of the
organization?
Can any of these movements be eliminated?
Duplication of Activity
Are some of the activities duplicated or repeated?
Can any activities be removed from the
process while meeting the customers
valid requirements for outputs?
Time Required
What is the time required for each of the
steps or activities within the process?
Can the time be shortened for any of the
steps or activities?
Is unnecessary time wasted on
transportation, storage, or delays?
How much time is used between activities?
Can time activities be reduced?
Materials
Are the supplies and materials used in
this activity effective?
Have new materials been developed that
would perform the function at less cost?
Has there been any price, delivery, or
quality problems?
Tecnolgy
What is the cutting edge?
Is there related technology which could
be adapted to improve this process?
Process Users
Why are you doing this?
What document controls this activity?
How were you trained?
Was the training adequate?
How do you know you are performing
the activity correctly?
Where do you get the inputs you need to
perform this activity?
What types of errors come to you?
Do you have any problems related to this?
What makes the job difficult?
Key Points
ASK the person if they have any
suggestions on how to improve to
process!
Value can be viewed as a relationship of
functionality or effectiveness over cost
VALUE=functionality/Cost
The VALUE of the output can increase by
either reducing costs or by increasing
effectiveness
EVALUATE alternatives based on their
impact on both efficiency and
effectiveness
Achieving a minor increase in
functionality at a major cost is not
justified
A major increase in functionality with a
minor cost could be acceptable
VA/ VE = Continuous Cost
Improvement Manufacturing Cost
Part Cost
Material
Finishing
Design
Dimensions & Tolerances
Tooling Type
Process
Volume
Standardization
Packaging
Assembly Cost
Assembly Time
Parts Handling
Levels of Assembly
Labor Rate
Volume
Design
Standardization
Tooling Cost
Volume
Process
Tooling Material
Dimensions & Tolerances
Standardization
Overhead
Approach for Reducing Costs
Design for Assembly (DFA)
A Group of Practices which Minimizes
Manufacturing Costs
Minimize the Number of Parts
Avoid Separate Fasteners
Establish Assembly Surfaces
Eliminate or Simplify Adjustments
Reduce Handling
Design for Assembly Benefits
Fewer Drawings
Less Assembly
Less Handling, Inventory
Less Inspection
Improved Quality (Fewer Problems)
Less Purchasing
Methodologies for Reducing Waste
Value Engineering
Occurs During the Design Process.
Examines the Function of the Design.
Documents the Cost of Each Function.
Explores Alternatives for how the Same
Function can be Provided at a Reduced
Cost.
Maintains the Focus on Customer Satisfaction.
Value Analysis
Occurs on After the Design has been
Completed or on Carryover Products.
Existing Designs are Evaluated to
Increase Function or Reduce Cost.
Valued Analysis.mmap - 13/06/2014 - Mindjet