Value Analysis VA NVA Continuous Improvement Toolkit . - - PowerPoint PPT Presentation

▶
value analysis
SMART_READER_LITE
LIVE PREVIEW

Value Analysis VA NVA Continuous Improvement Toolkit . - - PowerPoint PPT Presentation

Sep 19, 2023 335 likes •548 views

Continuous Improvement Toolkit Value Analysis VA NVA Continuous Improvement Toolkit . www.citoolkit.com The Continuous Improvement Map Managing Selecting & Decision Making Planning & Project Management* Risk PDPC Break-even Analysis

slide-1
SLIDE 1

Continuous Improvement Toolkit . www.citoolkit.com

Continuous Improvement Toolkit Value Analysis

NVA VA

slide-2
SLIDE 2

Continuous Improvement Toolkit . www.citoolkit.com The Continuous Improvement Map

Check Sheets

Data Collection

Process Mapping Flowcharting Flow Process Charts** Just in Time Control Charts Mistake Proofing Relations Mapping

Understanding Performance**

Fishbone Diagram Design of Experiment

Implementing Solutions*** Group Creativity

Brainstorming Attribute Analysis

Selecting & Decision Making

Decision Tree Cost Benefit Analysis Voting

Planning & Project Management*

Kaizen Events Quick Changeover

Managing Risk

FMEA PDPC RAID Log* Observations Focus Groups

Understanding Cause & Effect

Pareto Analysis IDEF0 5 Whys Kano KPIs Lean Measures Importance-Urgency Mapping Waste Analysis** Fault Tree Analysis Morphological Analysis Benchmarking*** SCAMPER*** Matrix Diagram Confidence Intervals Pugh Matrix SIPOC* Prioritization Matrix Stakeholder Analysis Critical-to Tree Paired Comparison Improvement Roadmaps Interviews Quality Function Deployment Graphical Analysis Lateral Thinking Hypothesis Testing Visual Management Reliability Analysis Cross Training Tree Diagram* ANOVA Gap Analysis* Traffic Light Assessment TPN Analysis Decision Balance Sheet Risk Analysis* Automation Simulation Service Blueprints DMAIC Product Family Matrix Run Charts TPM Control Planning Chi-Square SWOT Analysis Capability Indices Policy Deployment Data collection planner* Affinity Diagram Questionnaires Probability Distributions Bottleneck Analysis MSA Descriptive Statistics Cost of Quality* Process Yield Histograms 5S Pick Chart Portfolio Matrix Four Field Matrix Root Cause Analysis Data Mining How-How Diagram*** Sampling Spaghetti ** Mind Mapping* Project Charter PDCA

Designing & Analyzing Processes

Correlation Scatter Plots Regression Gantt Charts Activity Networks RACI Matrix PERT/CPM Daily Planning MOST Standard work Document control A3 Thinking Multi vari Studies OEE Earned Value Delphi Method Time Value Map** Value Stream Mapping** Force Field Analysis Payoff Matrix Suggestion systems Five Ws Process Redesign Break-even Analysis Value Analysis** Flow Pull Ergonomics

slide-3
SLIDE 3

Continuous Improvement Toolkit . www.citoolkit.com

Value:

 One of the most important concepts within Lean.  One of the most valuable outcomes Lean provides.  Value Analysis focuses on what adds value to business

processes as perceived by the customer.

 A process that does not add value to the product or service

should be redesigned or eliminated altogether.

  • Value Analysis
slide-4
SLIDE 4

Continuous Improvement Toolkit . www.citoolkit.com

 Each step within a process can be classified into one of three

categories:

  • Value added activities.
  • Essential non-value added activities (or unavoidable wastes).
  • Non-value added activities.
  • Value Analysis

NVA

Step 3

ENVA

Step 2

VA

Step 1

slide-5
SLIDE 5

Continuous Improvement Toolkit . www.citoolkit.com

Value Added Activities:

 Increase the worth of a product or services from the customer’s

perspective.

 Common examples include:

  • Machining a part.
  • Serving a customer at a call center.
  • Value Analysis

NVA

Step 3

ENVA

Step 2

VA

Step 1

slide-6
SLIDE 6

Continuous Improvement Toolkit . www.citoolkit.com

Essential Non-Value Added Activities:

 Add no value to a product or service.  The customer is not willing to pay for them.  However, they are necessary for the business due to the current

settings of the process.

 Common examples include: purchasing, R&D and inspecting

parts for quality defects.

  • Value Analysis

NVA

Step 3

ENVA

Step 2

VA

Step 1

slide-7
SLIDE 7

Continuous Improvement Toolkit . www.citoolkit.com

Non-Value Added Activities:

 Add no value to the product or service.  Not required for business operational reasons.  Must be eliminated immediately.  Common examples include:

  • Rework an application form.
  • Handling of materials between operations.
  • Delayed starts.
  • Value Analysis

NVA

Step 3

ENVA

Step 2

VA

Step 1

slide-8
SLIDE 8

Continuous Improvement Toolkit . www.citoolkit.com

 Researches has shown that value added activities are typically

less than 10% of the total process lead time.

  • The work that the customer cares about is only 10%.
  • Value Analysis

Essential NVA Waste / NVA VA

slide-9
SLIDE 9

Continuous Improvement Toolkit . www.citoolkit.com

 The first step when analyzing the value of any process is to

determine who the ultimate customer is.

 An ultimate customer is the end user of the product or service.  Understand their expectations clearly and know exactly what

they are willing to pay for.

 Listen actively to your customers.  Encourage them to send feedback on how

well your product or service meets their needs (for future process improvements).

  • Value Analysis
slide-10
SLIDE 10

Continuous Improvement Toolkit . www.citoolkit.com

 Patients are the ultimate customers in medical services.  It is important to provide them with comprehensive and

personalized health care.

 Patients instead often get stuck in processes

that don’t add value to their primary care:

  • They are often asked to fill out medical

forms multiple times.

  • They wait too long to receive a consultation

from their primary doctor.

  • Value Analysis
slide-11
SLIDE 11

Continuous Improvement Toolkit . www.citoolkit.com

 The traditional approach to process improvement is to focus on

reducing the time to perform the value added work.

  • Normally through capital investment.

 The Lean approach however focuses on eliminating the root

causes of the 90% of the non-value added activities.

  • Much cheaper and more effective.
  • Value Analysis

Lean Approach

slide-12
SLIDE 12

Continuous Improvement Toolkit . www.citoolkit.com

 Tools to identify and analyze non-value added activities:

  • The eight wastes.
  • Waste walks.
  • Waste recording forms & waste logs.
  • Opportunity process map.
  • Value matrix.
  • Value timeline.
  • VA/NVA metrics.
  • Value Analysis
slide-13
SLIDE 13

Continuous Improvement Toolkit . www.citoolkit.com

The Eight Wastes:

  • Value Analysis

Transport Inventory Motion Waiting Overproducing Over Processing Defects Skills

TIM WOODS

slide-14
SLIDE 14

Continuous Improvement Toolkit . www.citoolkit.com

Waste Walks:

 Used to quickly identify waste within an area or in a process.  Allows walkers to understanding how the process really works.  Helps them quickly identify waste and identify continuous

improvement opportunities.

  • Value Analysis

Observe the process with an eye towards waste

slide-15
SLIDE 15

Continuous Improvement Toolkit . www.citoolkit.com

How to Conduct a Waste Walk:

 Clearly describe the objective of conducting the waste walk.  Select the process or area and define the boundaries.  Prepare an observation form to collect the desired information.  Get permission from the process owner or supervisor to conduct the

walks and talk to the people there.

 Walk the flow of the process and look for each

  • f the eight types of waste.

 Collect data, observe actual practices, interview

people and ask questions.

 Identify opportunities to eliminate waste.  Prioritize improvement actions as appropriate.

  • Value Analysis
slide-16
SLIDE 16

Continuous Improvement Toolkit . www.citoolkit.com

Waste Recording Form:

 Helps identify and record wasteful activities.  It usually contains a place to classify the waste according to the

eight wastes.

 It may also contain a place that encourages the team to propose

priority areas for action.

  • Value Analysis

Process Waste Category Description Possible Cause Proposed Action

slide-17
SLIDE 17

Continuous Improvement Toolkit . www.citoolkit.com

Opportunity Process Map:

 Provides a visual picture of how the process works and where

wasteful activities exist.

 A type of process map with additional information about

whether activities are value added or non-value added.

  • Value Analysis

NVA

Step 3

ENVA

Step 2

VA

Step 1 Lead Time

QT PT

15 minutes 3 minutes 24 minutes 3.4 hours 2.2 hours

slide-18
SLIDE 18

Continuous Improvement Toolkit . www.citoolkit.com

Value Matrix:

 Used to help make correct decisions about wasteful and non-

value added activities.

 If the activity is unnecessary and adds no value to the product

  • r service, then you need to eliminate it immediately.

 If the activity adds no value but is necessary for business

  • perational reasons, then it can be reduced, integrated or

simplified to optimize the process.

  • Value Analysis

$$

Reduce Integrate Simplify

Waste

slide-19
SLIDE 19

Continuous Improvement Toolkit . www.citoolkit.com

Value Timeline:

 Reflects the value added and the non-value added activities of

the core process.

 Helps approximating VA and NVA percentages.  Placed at the bottom the value stream map.

  • Value Analysis

30 sec 0.1 days 45 sec 17 sec 376 sec 179 sec 0.1 days 0.1 days 75 days 0.4 days 0.2 days 397 sec 12 days

NVA VA

slide-20
SLIDE 20

Continuous Improvement Toolkit . www.citoolkit.com

VA/NVA Metrics:

 Total Value Added Time.  Value Stream Ratio (VA%) - The proportion of time spent in the

process that a product or service is actually being worked on a way that is adding value.

  • Value Analysis

VS Ratio (%) = Total Value Add Time Total Lead Time