valued analysis methodology

Valued Analysis

7 waste types

People

Motion

Incorrect layouts

Lack of proximity of machines

Off-line resources

Waiting TimeWaiting 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

ProductTransportation

Unnecessary movement

Extra handling

Definitions

Value Added

Any activity or operation performed thathelps transform a product or servicefrom its raw state into its finished form.

Completed right the first time.

Any activity customer is prepared to payfor. Activity required to ensure that aproduct or service is delivered inconformance to specification.

Non-Value Added

Any activity that doesn’t help totransform a product or service into itsfinal 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 1Define 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 majorand minor activities

Start with the customer

Customer – receiving department of anoutput, 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-addedactivities or processes (Value StreamMap)

Spread Sheet Analysis (VA to NVA ratios)

Time-Value Analysis

Destination Points

Does the decision point represent asappraisal, a review, or an inspectionwhich could be eliminated if preventionwere built into the process at an earlierpoint?

Is this a necessary decision or can theprocess proceed without a decision here?

Is there repetition of decision within the process?

Value Added

Does each activity within the processadd value to the output, the product, orservice which the customer receives?

Is the activity necessary to meet thecustomer’s requirements andexpectations?

Would the customer be willing to pay forthat step of the process if the customerknew it existed?

Activity Flow

Does the process move frequently backand forth between various units of theorganization?

Can any of these movements be eliminated?

Duplication of Activity

Are some of the activities duplicated or repeated?

Can any activities be removed from theprocess while meeting the customer’svalid requirements for outputs?

Time Required

What is the time required for each of thesteps or activities within the process?

Can the time be shortened for any of thesteps or activities?

Is unnecessary time wasted ontransportation, storage, or delays?

How much time is used between activities?

Can time activities be reduced?

Materials

Are the supplies and materials used inthis activity effective?

Have new materials been developed thatwould perform the function at less cost?

Has there been any price, delivery, orquality problems?

Tecnolgy

What is the cutting edge?

Is there related technology which couldbe 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 performingthe activity correctly?

Where do you get the inputs you need toperform 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 anysuggestions on how to improve toprocess!

Value can be viewed as a relationship offunctionality or effectiveness over cost

VALUE=functionality/Cost

The VALUE of the output can increase byeither reducing costs or by increasingeffectiveness

EVALUATE alternatives based on theirimpact on both efficiency andeffectiveness

Achieving a minor increase infunctionality at a major cost is notjustified

A major increase in functionality with aminor cost could be acceptable

VA/ VE = Continuous ‘Cost’ImprovementManufacturing 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 MinimizesManufacturing 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 SameFunction can be Provided at a ReducedCost.

Maintains the Focus on Customer Satisfaction.

Value Analysis

Occurs on After the Design has beenCompleted or on Carryover Products.

Existing Designs are Evaluated toIncrease Function or Reduce Cost.

Valued Analysis.mmap - 13/06/2014 - Mindjet