Professional Documents
Culture Documents
Lean Foundations
Continuous Improvement Training
The Causes of Waste in most Processes
Focus on
Types of Waste Problems/ Causes
reduction (7W’s)
Value Incorrect layouts
Waste
Added Lack of proximity of machines
Motion Off-line resources
People
Waiting workers, machines, materials
Long set-ups and lead times
Waiting time
Non- Value Added, Large batches, raw material stocks
High WIP, finished goods stocks
but necessary Overproduction Making for the sake of it
Ignoring customer demands
Process
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Value Analysis
Overview
Overview
Methodology For Reducing Muda
(waste)
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Definitions
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 doesn’t 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 )
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VA/
VA/ FA
FA Steps
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
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VA/
VA/ FA
FA Steps
Steps
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
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VA/
VA/ FA
FA Steps
Steps
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?
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VA/
VA/ FA
FA Steps
Steps
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
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Value Analysis
Investigative
Investigative Techniques
Techniques
VA/
VA/ FA
FA Questions
Questions
DECISION 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?
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VA/
VA/ FA
FA Questions
Questions
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
customer’s requirements and expectations?
– Would the customer be willing to pay for
that step of the process if the customer
knew it existed?
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VA/
VA/ FA
FA Questions
Questions
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 customer’s valid
requirements for outputs?
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VA/
VA/ FA
FA Questions
Questions
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?
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VA/
VA/ FA
FA Questions
Questions
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?
TECHNOLOGY
– What is the cutting edge?
– Is there related technology which could be
adapted to improve this process?
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VA/
VA/ FA
FA Questions
Questions
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?
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VA/
VA/ FA
FA Best
Best Practices
Practices
KEY POINTS
– ASK the person if they have any
suggestions on how to improve to process!
VALUE = Functionality
Cost
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VA/
VA/ FA
FA Best
Best Practices
Practices
KEY POINTS
Part Costs
• Material
• Finishing
Assembly Costs
• Design
Assembly Time
Parts Handling
• Dimensions & Tolerances Tooling Costs
• Tooling Type
Levels of Assembly
• Volume
• Process
Labor Rate
• Process
• Volume
Volume
• Tooling Material
• Standardization
Design
• Dimensions & Tolerances
• Packaging
Standardization
• Standardization
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Approach for Reducing Costs
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Design for Assembly Benefits
Fewer Drawings
Less Assembly
Less Handling, Inventory
Less Inspection
Improved Quality (Fewer Problems)
Less Purchasing
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Methodologies for Reducing Waste
Value Engineering
Occurs During the Design
Process. Value Analysis
Examines the Function of Occurs on After the
the Design.
Design has been
Documents the Cost of Completed or on
Each Function.
Explores Alternatives for Carryover Products.
how the Same Function can
be Provided at a Reduced
Existing Designs are
Cost. Evaluated to Increase
Maintains the Focus on Function or Reduce
Customer Satisfaction. Cost.
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The Lean Enterprise
Value Analysis/ Flow Analysis
Lean Foundations
Continuous Improvement Training