Class Presentation PPT: NVA & VA

Efficiency Efficiency
• Any production method relies on efficiency – this can
• Production decisions involve deciding methods
be viewed in different ways: for new production runs and analysis of existing
• Productivity – a measurement of output per unit of methods.
the factor used (labour, capital or land) • Decisions may include:
Total Output – Substitute machinery for labour?
Productivity = -------------------
Units of Factor
– Use of new technology?
• Technical Efficiency – output produced using the – Organisation of the production layout?
fewest possible inputs – Change of production method?
• Productive Efficiency – output produced at the
lowest possible cost

What is MUDA?
Muda means any wasteful activity or any
obstruction to smooth flow of an activity

Activity = Work + Muda

Expenditure = Cost + waste

That is, for each activity there is expenditure and every

work there is a cost associated. Any expenditure on
the Muda is a waste!

What is Mura? What is Muri?

Mura = Inconsistencies in the system
Muri = Physical Strain

• Happens sometimes?
– Bend to work?
• Happens some places – Push hard?
• Happens to some people – Lift weight?
• One side is ok; the other side is not ok – Repeat tiring action?
– Wasteful walk?

All this is Muri

Welingkar/Mukundan/PGPMS 1
Class Presentation PPT: NVA & VA

Removing Waste Removing Waste

Shrinking Lead Times Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little
Order Lead Times Manufacturing Lead Times Delivery Lead Times time spent on adding value to the product.

Non-Value Added Time (NVA) Value Added Time (VA)

99% of Total Lead time 1%
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Common Concentrated on reducing VA
Reducing the overall time from receiving the order to delivering the Improvement Efforts time, with no attention given to
product makes your company more responsive to the customer. NVA.
This can become the deciding factor when the customer makes their
selection. Non-Value Added Time (NVA) VA
99% of Total Lead time 1/2 %
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area for Results of Common Improvement efforts, did not improve
improvement, as well as, assembly, loading and delivery to the response time. VA time is reduced, but, the costs for those
customer` improvements in lead time was substantial.

Removing Waste Focus on Reducing NVA

Where’s the Time in Lead Time
When we look at attacking the NVA Activities in the Timeline •Value-Add Activity
and compare that to the original timeline:
Greatest Opportunities are actually here!

Non-Value Added Time (NVA) Value Added Time (VA)

99% of Total Lead time 1% Non-Value-Add Activity
NVA Time VA
95% of Total Lead time 5%

NVA Reduction is a Non Traditional Approach

Great Job!! This shows a 5X improvement in lead time
Major Impact on Lead Time and QCD

Some examples NVA Activities: SHIFT MINDSET

CURRENT REQUIRED
THINKING THINKING
Walking Waiting on
Processing Transportation
machine cycle

Unnecessary Generating Inventory TYPES Correction

stock on hand useless reports
WASTE Waiting
OF
WASTE
Over-
Production
Unnecessary
Transporting motion
Motion

parts
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
THE GOAL IS TO ELIMINATE THE REACTIVE IMPROVEMENT
WASTE IS "TANGIBLE”
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT

NON-VALUE ADDED ACTIVITIES.

Welingkar/Mukundan/PGPMS 2